The Advertising Regulatory Board of South Africa has added new regulations for the cryptocurrency industry to its advertising code.
This new clause, added to Section III of the code, is designed to protect consumers from deceptive advertising practices.
Companies and individuals operating in the country will have to abide by these standards when advertising cryptocurrency products and services.
The regulations require that advertisements clearly state the potential for loss of capital and cannot contradict warnings about investment risks.
Advertisements must also present a balanced view of returns, features, benefits and risks associated with the product or service being advertised, and provide adequate substantiation of any projected or forecasted returns.
Additionally, social media influencers and brand ambassadors must also comply with these standards, including providing factual information and not offering advice on trading or investing in crypto assets.
