On Monday, the South African Advertising Regulatory Board (ARB) published an updated code of advertising practice with strong guidelines specifically dedicated to protecting consumers from fraudulent crypto advertisements. These new rules aim to regulate and ensure transparency in the growing cryptocurrency sector.
Clear and Plain Advertisement
South Africa has recently issued new guidelines for all cryptocurrency companies and individuals, mandating that they comply with Section III of the country’s advertising code. These protocols insist that crypto advertisements clearly express the risk associated with investing in this variable asset–namely, that capital may be lost as its value is prone to fluctuate both upwards and downwards. In addition to this situation, ARB said that complicating and exaggerated expressions should be avoided, and emphasized that all warnings in advertisements should be conveyed plainly and clearly so that everyone can understand.
Influencers Are Also Regulated
The South African ARB is also seeking to tighten the rules for social media influencers who promote crypto. It added that social media influencers and ambassadors should only share factual information rather than offer advice on trading or promising guaranteed returns.
After the EMAX project began its nefarious mission of using investors to pump and dump, a class action lawsuit was filed against its promoters, Kim Kardashian and sports legend Floyd Mayweather Jr. Subsequently, this prompted regulators to set up stringent policies about promoting investment programs such as crypto assets. As the cryptocurrency space evolves, so does its governing rulebook. Despite adhering to a strict set of guidelines for influencers acting as digital marketers, this market has earned an undeniable tenacity over the years and continues to strengthen in light of recent regulations.
