Crypto asset service providers in South Africa seeking to attract investors via advertisements must “expressly and clearly state that investing in crypto assets may result in the loss of capital.” Influencers working on behalf of crypto asset service providers must “not offer advice on trading or investing in crypto assets and may not promise benefits or returns.”
New Code the Result of Collaborative Effort Between ARB and Crypto Entities
According to the latest code of practice released by South Africa’s Advertising Regulatory Board (ARB), crypto-related advertisements must clearly warn the public that investing in digital assets “may result in the loss of capital.” Furthermore, ARB’s latest code states that the overall wording of such adverts should not contradict this warning.
The new crypto asset advertising guidelines, which are reportedly the result of the collaborative effort between ARB and South African crypto exchanges, are seemingly intended to preclude scammers from targeting their victims via regulated media platforms. Commenting on the inclusion of crypto assets in the latest advertising code, Gail Schimmel, the CEO at ARB, reportedly said:
This is a wonderful example of an industry that sees the harm that…