• South Africa’s Advertising Regulatory Board (ARB) has introduced new cryptocurrency-focused rules into the nation’s advertising code to protect consumers from misleading advertising.
• The new guidelines aim to ensure that cryptocurrency advertisements accurately state the risks involved with all cryptocurrency investments, making it clear to consumers that they stand to lose their capital due to market volatility.
• The ARB has also stated that crypto advertisements must prominently display the name and contact details of the issuer or sponsor of the cryptocurrency.
South Africa’s Advertising Regulatory Board (ARB) has taken action to protect crypto investors from misleading advertising. On January 23, the ARB introduced new cryptocurrency-focused rules into the nation’s advertising code, in order to ensure that consumers are not misled into investing in crypto assets.
The new regulations require that all cryptocurrency advertisements must accurately state the risks involved with all cryptocurrency investments, making it clear to consumers that they stand to lose their capital due to market volatility. In addition, the ARB has also stated that crypto advertisements must prominently display the name and contact details of the issuer or sponsor of the cryptocurrency.
The ARB has taken this action in response to the growing prevalence of false or misleading crypto advertising claims in South Africa. Such claims include promises of guaranteed returns, claims of low risk, and other false promises which are not backed by evidence. Such claims can be extremely damaging to consumers, who can be fooled into investing large amounts of money in crypto assets without fully understanding the risks.
The new guidelines from the ARB are designed to make sure that crypto investors are fully aware of the risks of investing in digital assets, and that they can easily identify the issuer of the asset. This will ensure that investors are able to make informed decisions about their investments, and that they are able to seek redress if necessary.
In addition to the new advertising guidelines, the ARB has also created a cryptocurrency education portal, in order to provide consumers with a reliable source of information about the risks associated with investing in digital assets. The portal will provide information about different types of crypto assets, as well as advice on how to identify fraudulent or misleading offers.
The ARB believes that these measures will help protect consumers from being misled into investing in crypto assets, while also providing them with the tools they need to make informed decisions. The ARB is also encouraging consumers to research any potential investments thoroughly, and to be aware of the risks involved.