New South African code says that crypto-asset ads must contain a capital loss warning-Africa
New South African code says that crypto-asset ads must contain a capital loss warning-Africa
crypto asset service provider in South Africa who want to attract investors through advertising must "explicitly and clearly explain that investments in crypto-assets may be made to capital loss ." Influencers who work on behalf of crypto-asset service providers are "not allowed to offer advice on trade or investment in crypto-assets and are not allowed to promise advantages or returns".
New code The result of the cooperation between Arb and crypto units
According to the latest code of conduct of the South African advertising Regulatory Board (Arb), crypto -related advertising must clearly warn the public that investments in digital assets can "lead to capital loss". In addition, Arb's latest code says that the overall formulation of such displays should not contradict this warning.
The new advertising guidelines for crypto-assets, which are reported to be the result of the cooperation between Arb and South African crypto exchanges, are apparently intended to prevent fraudsters from attacking their victims on regulated media platforms. Gail Schimmel, CEO of Arb, commented on the recording of crypto-assets in the latest advertising code. supposedly said:
This is a wonderful example of an industry that sees the damage that could be done in its name and endeavors to regulate the problems themselves without being forced to do so. This was an exciting project and we know that it will lead to better protection for consumers in need of protection.
In the meantime, the self -regulatory committee would like to use capital losses in addition to warning that the advertisements use a language that is easy to understand for the target group. With regard to the promise of future income or profits, the new code stipulates that such advertisements "have to be supported by an appropriate reason that meets the requirements of Section 4.1 of Section II of Section II".
Likewise, advertising that refers to previous services should not be presented in such a way that it leaves a "favorable impression of the advertised product or the advertised service".
If an influencer is set or used to attract potential investors, the new code says that the person in question can only "pass on factual information". In addition, influencers and project ambassadors are prohibited from "offering advice on trade or investing in crypto-assets and must not promise any advantages or returns".
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