The Advertising Standards Council of India (ASCI) has said that currently, no changes to the guidelines on crypto advertisements are being discussed, clearing the air on its position as an important stakeholder on a suggested ban on Indian celebrities endorsing crypto products.

India's Securities and Exchange Board of India (SEBI) had suggested that no prominent public figures, including celebrities and sportsmen, should endorse crypto products and that an ad disclosure should also talk about possible violation of laws, according to a report by The Hindu Business Line.

SEBI submitted a written report of its views to the Parliamentary Standing Committee on Finance, the report said.

Manisha Kapoor, the CEO and Secretary General of the Advertising Standards Council of India (ASCI), said "this appears to be the view of SEBI in ongoing discussions within the government."

"ASCI has a specific guideline on celebrities. Plus there is a clause in the crypto guidelines as well. We have always maintained that celebrities need to do their due diligence on the claims they endorse. And the Consumer Protection Act, too, lays down penalties for endorsers in case the [ad] they feature in is found misleading, and if they have done no due diligence. Endorsers may not have domain expertise but they must take the effort to do due diligence as part of their responsibilities," Kapoor said.

ASCI does not have the authority to ban celebrities from endorsing any products. That authority rests with the government alone. However, ASCI guidelines are considered a blueprint to follow to protect Indian consumers' interests in the interest of self-regulation in advertising.

"ASCI needs celebrities to be careful. Since banning or not is not in our preview, it’s not a stance ASCI can take or has taken," Kapoor said.

While the government may be evaluating the possibility of imposing a ban, it may not be realistic and could potentially be challenged, a source familiar with the matter told CoinDesk.

In late 2021, India's Prime Minister Narendra Modi chaired a meeting to consider the regulatory prospects for cryptocurrencies. At that meeting, according to reports, a strong consensus was reached to stop "attempts to mislead the youth through over-promising and non-transparent advertising."

ASCI then released fresh guidelines on Feb. 23, 2022 and effective April 1, 2022 after discussions were held with different stakeholders.

Under India's Consumer Protection Act, celebrities can be fined up to Rs 10 lakh (roughly $13,000 approx.) for a false or misleading ad in the first instance and Rs 50 lakh (approximately $65,000) for any further instances, with the possibility of a complete ban on endorsing any product for up to three years.