South African Self-Regulatory Body Imposes Risk Warnings in Crypto Advertisements

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Crypto adverts in South Africa must warn potential buyers that their capital may be at risk, according to new guidelines published on Monday by the country’s Advertising Regulatory Council, a self-regulatory initiative for the advertising and relationship industry. public.

The ARB is also looking to tighten the rules for social media influencers who promote crypto.

This is a wonderful example of an industry that sees the harm that could be done in its name and is committed to self-regulating issues without being forced into it by government, said Gail Schimmel, chief executive of the ARB. a statement sent by email.

Crypto advertisements must expressly and clearly state that investing in crypto assets may result in a loss of capital as the value is variable and may rise or fall, according to updated ARB guidelines.

Influencers and social media ambassadors should only share factual information rather than offering trading advice or promising guaranteed returns, he added.

The country is the latest in seeking to ensure that crypto advertising is fair and honest. The UK is also proposing legislation to limit crypto promotions, and in the US, reality TV star and influencer Kim Kardashian recently settled with the Securities and Exchange Commission for $1.26 million for having hype EthereumMax without disclosing that she was paid.

Read more: Crypto marketing must change. Let’s make 2023 the year of influencer accountability

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