The South African Advertising Regulatory Board (ARB) has introduced a new provision for the cryptocurrency business. This clause is intended to protect consumers against unethical advertising in the cryptocurrency industry.
A new clause has been added to Section III of the advertising code for the nation of South Africa, stipulating that businesses and individuals in the country must adhere to specific advertising standards related to the offering of cryptocurrency-related goods and services.
Stating ‘expressly and clearly’ that investments can result in the loss of cash “since value is variable and can go up or down” is something that all advertisements, including those for cryptocurrency deals, must do in accordance with the former. . regulation clause.
In addition, advertisements indicating possible investment losses must not contradict any warnings given.
It is essential that marketing communications for certain services and goods are presented in a way that is “clearly understood” by the target demographics.
Advertisements must provide statements that are fair and unbiased about the returns, features, benefits, and dangers associated with the product or service being promoted.
Rates of return, predictions or forecasts must also be fully supported, including a description of how they are calculated and an explanation of the circumstances that apply to the returns being promoted.
Any information referring to past performance cannot be used to guarantee future performance or returns, and must not be presented in a manner that creates “a favorable image of the product or service marketed.” [Case in point:]
It is inappropriate for advertisements placed by bitcoin service providers who are not also registered credit providers to promote the purchase of cryptocurrency through credit.
However, this does not prevent service providers from promoting the linked payment options they provide to customers.
Additionally, social media influencers and brand ambassadors will be required to adhere to certain advertising guidelines.
This includes the need to share truthful information, as well as the prohibition on giving advice on trading or investing in crypto assets and the prohibition on claiming advantages or returns.