Protecting Crypto Investors: South Africa Announces New Advertising Guidelines
• The South Africa Advertising Regulatory Board (ARB) recently updated its code of advertising practice, introducing new guidelines to protect consumers from unethical cryptocurrency advertising.
• These guidelines mandate companies and individuals dealing with cryptocurrency products and services in South Africa to abide by Section III of the country’s advertising code.
• The new guidelines include that crypto advertisements must inform potential investors of the potential risks and losses, and must give balanced messages around returns, features, benefits and risks of the associated product or service.
The South Africa Advertising Regulatory Board (ARB) recently announced the introduction of new guidelines for the cryptocurrency advertising sector. This move follows a growing demand for consumer protection in the emerging crypto market, and the need for greater transparency when advertising crypto products and services.
The updated code of advertising practice, which applies to companies and individuals dealing with cryptocurrency products and services in South Africa, mandates that all crypto advertisements must abide by Section III of the country’s advertising code. This includes that all crypto adverts must expressly and clearly state that investments may result in the loss of capital, as the value of cryptocurrencies is variable and can go up as well as down. Furthermore, the adverts must not be sugar-coated or deny warnings related to potential investment losses.
In addition to potential risks, the advertisements must also provide a detailed and easily understandable explanation of the offer in order to protect consumers from being misled. This includes providing balanced messages around returns, features, benefits, and risks associated with the product or service being advertised.
The ARB’s updated code of advertising practice highlights the importance of consumer protection in the crypto market, and serves as a reminder that potential investors should always conduct their own research into any cryptocurrency product or service before investing. The code also serves as a warning to companies and individuals dealing with cryptocurrency products and services in South Africa to ensure their advertising practices are compliant with the country’s laws.