South African Self-Regulatory Body Requires Risk Warnings In Crypto Ads

Key Points:

• Self-regulatory initiative by the ad and public relations industries, cryptocurrency commercials in South Africa must alert potential buyers that their wealth may be at danger.
• ARB wants to make it harder for social media influencers to promote cryptocurrency.
• It was further stated that social media influencers and ambassadors should refrain from giving trading advice or guaranteeing returns and should only give accurate information.

According to new guidelines released on Monday by the country’s Crypto Ads – Advertising Regulatory Board, a self-regulatory initiative by the ad and public relations industries, cryptocurrency commercials in South Africa must alert potential buyers that their wealth may be at danger.

The ARB wants to make it harder for social media influencers to promote cryptocurrency.

“This is a wonderful example of an industry that sees the harm that could be done in its name, and steps up to self-regulate the issues without being forced to do so by government,” Gail Schimmel, chief executive officer of the ARB, said in an emailed statement.

Crypto ads “must expressly and clearly state that investing in crypto assets may result in the loss of capital as the value is variable and can go up as well as down,” said the updated ARB guidance.

It was further stated that social media influencers and ambassadors should refrain from giving trading advice or guaranteeing returns and should only give accurate information.

The nation is the most recent to strive to guarantee honest and fair publicity for cryptocurrencies. In the United States, reality TV star and influencer Kim Kardashian recently reached a $1.26 million settlement with the Securities and Exchange Commission for promoting EthereumMax without disclosing that she was being paid for it. The United Kingdom is also considering legislation to limit cryptocurrency promotions.

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