New South African Code Says Crypto Asset Ads Must Include Capital Loss Warning
Ads related to crypto must clearly warn the public that investing in digital assets could put their capital at risk or their capital could be at risk, according to a new code of practice issued by South Africa’s Advertising Regulatory Board (ARB). May be in loss. Apart from this, the Advertising Regulatory Board says in the latest court that every single word of such advertisements should not act contrary to this warning or it should always continue with this warning.
The latest crypto asset advertising guideline is reportedly the result of a collaborative effort between the Advertising Regulatory Board and South African crypto exchanges and aims to deter scammers from targeting victims through regulated media platforms. Commenting on the inclusion of crypto in the latest ad court, Gail Schimmel, CEO of the Advertising Regulatory Board, reportedly said that this is a wonderful example of an industry that sees the damage being done to its name and that the government is trying to do so. takes steps and strives to self-regulate issues without being forced to and it’s an exciting project and we know it will give consumers who are vulnerable better access. Meanwhile, in addition to warning of loss of capital, the regulatory board requires that advertisements use language that is easily understood or easily perceived by the target audience. With regard to promises of future earnings or benefits, the new Code stipulates that such advertising “needs to be supported by sufficient corroboration that complies with the requirements of clause 4.1 of Section II”. Similarly, advertisements showing past performance should not be presented in such a way as to give a favorable impression of the advertised product or service. So far, as an influencer is hired or used to potential investors, the court held that the person concerned is entitled to share information only on the basis of facts or otherwise must share information based on fact and furthermore influencers and project ambassadors are prohibited from offering advice on trading or investing in crypto assets and not promising profits or returns.
