South Africa’s Advertising Regulatory Board (ARB), has created a new provision to protect cryptocurrency businesses. This clause was created to protect consumers against untrue advertising in cryptocurrency.
A new clause was added to Section III of the advertising code for the nation of South Africa, and it stipulates that businesses and people in the country are required to comply by specific advertising standards relating to the offering of cryptocurrency-related goods and services.
All advertisements, including those for cryptocurrency, must state clearly and explicitly that investments could result in cash loss.
Advertising indicating possible investment losses must not contradict any warnings.
It is crucial that marketing communications for certain products and services be clearly understood by target audiences.
Advertisements should be honest and objective about the risks, benefits, returns and other aspects of the product or services being promoted.
Rates of Return, Predictions, or Forecasts must also be fully supported. These should include a description how they are calculated and an explanation of the circumstances under which they are promoted.
Information pertaining to past performance cannot be used as a guarantee of future performance or returns. It should not be presented in a way that creates a “favourable image” of the product or service. [Case in point:]
Advertisements that promote cryptocurrency purchases through credit are unacceptable from bitcoin service providers.
This does not mean that service providers cannot promote linked payment options to customers.
Brand ambassadors and social media influencers will also be expected to adhere to advertising guidelines.
This includes sharing truthful information, the ban on giving advice about trading or investing with crypto assets, and the prohibition against making claims to benefits or returns.