The South African Advertising Regulatory Board, a self-regulatory initiative by the advertising and public relations industry, has issued new guidelines for crypto advertisements in the country. According to the guidelines, any crypto advertisement must warn potential buyers that their capital may be at risk.
This move by the Board is a step towards protecting consumers from potential financial loss, as the crypto market is known for its volatility and unpredictability. The Board recognizes that while crypto assets can offer exciting investment opportunities, they can also be highly risky. As such, consumers must be made aware of the potential risks before making any investment decisions.
In addition to issuing new guidelines for crypto advertisements, the ARB is also seeking to tighten the rules for social media influencers who promote crypto.
The ARB recognizes that social media influencers can significantly impact consumer behaviour and that it is important to ensure that any crypto-related content shared by these influencers is accurate and honest.
The new rules for social media influencers will require them to disclose any financial relationships or affiliations they may have with crypto companies or assets. It will, however, help to prevent the spread of misinformation and promote transparency in the crypto market.
The ARB’s decision to self-regulate the crypto industry is commendable. “This is a good 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 the government,” said Gail Schimmel, chief executive officer of the ARB, in a statement sent via email.
South Africa is not the only country taking steps to ensure that cryptocurrency publicity is fair and honest. Several nations have recently examined ways to constrain crypto promotions and safeguard consumers from misleading or fraudulent marketing practices.
One example of this is the United Kingdom’s proposed legislation, which aims to curb crypto promotions by setting guidelines for how they are advertised and requiring that certain disclosures be made to consumers. The goal is to prevent individuals or entities from making false or misleading statements about cryptocurrency and to help protect consumers from potential financial harm.
Similarly, in the United States, the Securities and Exchange Commission (SEC) has been taking action against those who engage in misleading or fraudulent crypto promotions. For example, reality TV star and influencer Kim Kardashian recently settled with the SEC for $1.26 million for hyping EthereumMax without disclosing that she was being paid to do so.
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