According to new guidelines released on January 23 by the Advertising Regulatory Board (ARB), a self-regulatory body by the South African advertising and public relations industry, the country’s cryptocurrency ads are targeted at potential buyers. to warn that their funds may be at risk.
ARB is also looking to tighten regulations on social media influencers promoting crypto assets.
In an emailed statement, ARB CEO Gail Schimmel said, “This is an opportunity for the industry to recognize the potential harm[caused by cryptocurrencies]and self-regulate the issue without government coercion.” It’s a great example,” he said.
According to ARB’s latest guidelines, cryptocurrency ads should “explicitly and clearly state that an investment in cryptocurrencies can lead to losses, as their value is volatile and can go up and down.” I have to say.”
It also says that social media influencers and ambassadors should only share factual information rather than offering trading advice or promising guaranteed returns.
South Africa’s move is the latest to ensure that cryptocurrency advertising is fair and honest. The UK has also introduced legislation to limit the promotion of cryptoassets, and in the US, reality TV star and influencer Kim Kardashian recently sold EthereumMax without disclosing that he was paid. He settled with the Securities and Exchange Commission (SEC) for hype and paid a fine of $1.26 million.
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Influencer image (Shutterstock)
｜Original: South African Self-Regulatory Body Mandates Risk Warnings in Crypto Ads