You can no longer sell crypto in South Africa with dodgy numbers, or say it’s safe, under new advertising rules

[ad_1]

(Photo by Britta Pedersen/picture alliance via Getty Images)

Attempts to sell crypto assets now have specific rules under the South African Advertising Code, to protect potential buyers. Advertisers need to be very clear that tokens such as bitcoin carry the risk of losing your money. Influencers, if used, cannot make promises of returns. Consumers should keep their eyes peeled when putting money into crypto, some sellers say. For more stories, go to www.BusinessInsider.co.za.

South Africa’s Advertising Code of Practice, used by the Advertising Regulatory Board (ARB) to ban specific advertisements or penalize overriding advertisers, now has a specific section to deal with crypto assets.

And he says those selling bitcoin and its other crypto tokens need to be very clear and unambiguous about the risk of losing money.

The crypto section joins specific rules for a long list of other industries, including work-from-home programs, charities, real estate, and mobile phone services, which can pose unique risks to consumers. if they are mispromoted.

The crypto rules were created alongside companies in the industry, led by Luno, who said he wants buyers to enter the crypto market with their eyes open.

Membership of the ARB is voluntary and advertisers may choose not to be bound by its rules. But the body has the power to order its members of the media not to accept specific advertisements, to shut down distribution even if an advertiser does not comply with its decision.

Under the new rules, any advertisement for crypto must feature words at least similar to “investing in crypto assets may result in loss of capital.” This warning may not be outweighed by the general message of the ad.

Other rules state that:

any crypto asset or service should be explained “in a way that is easily understood by the intended target audience” benefits and features should be presented taking into account the risks any claims about returns or forecasts should be supported by evidence, with explanations of how forecasts are calculateda reference to past performance must include the disclaimer that it is not indicative of future performanceadvertising may not promote the borrowing of money to purchase crypto assets unless the advertiser is a registered credit grantor

If social media influencers or other ambassadors are used in the promotion, they must disclose payments or gifts and avoid deception, as in any advertising governed by the General Rules. But they are also specifically required, when it comes to crypto tokens, to “share factual information only” – and they cannot make promises about returns or benefits.

[ad_2]