• South Africa has recently released new guidelines for cryptocurrency advertisements in order to protect consumers from unethical advertising.
• These new guidelines mandate that crypto advertisements must clearly state that investments may result in the loss of capital, and must include well-detailed and easily understandable explanations for the targeted audiences.
• Crypto adverts must also give balanced messages around returns, features, benefits, and risks related to the associated product or service.
The South African Advertising Regulatory Board (ARB) recently released updated guidelines to protect consumers within the cryptocurrency advertisements sector. This new code of advertising practice is meant to ensure that consumers are not subject to unethical advertising and that they are aware of the risks associated with investing in cryptocurrency products and services.
The guidelines state that any advertisement regarding cryptocurrency products or services must be clear and express that investments may result in the loss of capital. This is because the value of cryptocurrency is variable and can go up or down. Furthermore, advertisements must not sugar coat any warnings associated with potential investment losses.
The guidelines also ensure that advertisements are detailed and easily understandable for their targeted audiences. They must provide balanced messages about returns, features, benefits, and risks associated with the product or service being advertised. This includes informing consumers about any fees or commissions associated with using the product or service.
In order to ensure that these guidelines are followed, the ARB has set up a monitoring system to keep track of advertisements being released. If a company or individual is found to be in violation of the guidelines, they will be subject to disciplinary action.
The ARB hopes that these new guidelines will help protect consumers within the cryptocurrency sector and ensure that they understand the risks associated with investing in cryptocurrency products and services. By providing clear and accurate information, consumers can make informed decisions when investing their money.