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Crypto asset service providers in South Africa seeking to attract investors through advertising must “clearly and unambiguously state that investing in crypto assets may lead to loss of funds. “Influencers working on behalf of crypto asset service providers” must not offer advice on trading or investing in crypto assets, nor promise benefits or returns. “

The new code is the result of a collaboration between the ARB and cryptographic entities

According to the latest code of conduct issued by South Africa’s Advertising Regulatory Board (ARB), cryptocurrency-related advertisements must clearly warn the public that investing in digital assets “may result in the loss of funds.” Additionally, the ARB’s latest code states that the overall wording of such advertisements should not contradict this warning.

Reportedly, the new crypto asset advertising guidelines are the result of a partnership between the ARB and South African cryptocurrency exchanges, and appear to be aimed at stopping scammers from targeting victims via regulated media platforms. Commenting on the inclusion of crypto assets in the latest ad code, ARB CEO Schimmel reportedly said:

This is a great example of an industry seeing the harm that could be done in its name and taking steps to self-regulate the problem, rather than being forced to do so [the] government. This is an exciting project and it will better protect vulnerable consumers.

At the same time, in addition to capital loss warnings, the Self-Regulatory Commission also wants advertisements to use language that is easy for the target audience to understand. With regard to promises of future income or benefits, the new law states that such advertisements must be supported by “substantial evidence meeting the requirements of Section II, Article 4.1.”

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Likewise, ads that refer to past performance should not be presented in a way that leaves a “favorable impression of the advertised product or service.”

If an influencer is hired or used to lure potential investors, the new guidelines state that the individual must “share factual information only.” Additionally, influencers and project ambassadors are prohibited from giving “advice on trading or investing in crypto assets, and must not promise gains or returns.”

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Terrence Zinwala

Terence Zimwara is an award-winning journalist, author and author from Zimbabwe. He has written extensively about the economic woes of some African countries and how digital currencies can provide escape routes for Africans.







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