• The South African Advertising Regulatory Board (ARB) has introduced new rules to protect crypto investors from misleading advertising.
• The new guidelines aim to ensure that cryptocurrency advertisements accurately state the risks involved with all cryptocurrency investments.
• The rules also require advertisements to make it clear to consumers that they stand to lose their capital due to market volatility.
The South African Advertising Regulatory Board (ARB) has recently taken action to protect investors from being misled by cryptocurrency advertisements. On January 23, the ARB introduced a set of new rules that are designed to ensure that any cryptocurrency advertisements accurately state the risks involved in investing in digital currencies.
The new rules require all cryptocurrency advertisements to clearly state that investing in crypto assets may result in the loss of capital as the value of the currency is highly variable and can change quickly. This should make investors aware of the potential risks associated with investing in digital currencies. Furthermore, the rules require any advertisements to include a warning that past performance and analysis of the crypto asset markets should not be relied upon as an indicator of future performance.
In addition, the new rules also require that all advertisements make it clear to consumers that they stand to lose their capital due to market volatility. This should make it easier for investors to make informed decisions when it comes to investing in digital currencies. The ARB also stated that no advertisement should be misleading in any way, and that all advertisements must be clear and easy to understand.
The ARB stated that it will take action against any company or individual who fails to comply with the new rules. This includes issuing fines or suspending the company or individual’s advertising licence. The ARB also noted that it will be monitoring the cryptocurrency market closely, and will take action if it finds any advertisements that are in violation of the new regulations.
It is hoped that the new rules will help to protect investors from being misled by cryptocurrency advertisements. By making it clear to investors that the value of digital currencies is highly variable and that they could stand to lose their capital in the event of market volatility, the ARB is aiming to ensure that investors are better informed about the risks associated with investing in digital currencies.