New South African Law Requires Capital Loss Warning in Crypto Asset Ads

Must read

Advertisements for crypto asset services in South Africa must “expressly and clearly warn that investing in crypto assets may result in the loss of capital.” Influencers working for crypto asset service providers are forbidden from “promising benefits or returns and from offering advise on trading or investing in crypto assets.”

Crypto-related commercials must expressly inform the public that investing in digital assets “may result in the loss of capital,” according to the most recent code of practice published by South Africa’s Advertising Regulatory Board (ARB).

Additionally, according to ARB’s most recent code, the overall phrasing of such advertisements must not contradict this warning.

The new crypto asset advertising restrictions, which are allegedly the outcome of a partnership between ARB and South African crypto exchanges, appear to be designed to stop con artists from using regulated media outlets to target their victims.

The self-regulating board wants the commercials to employ language that the intended audience can understand in addition to the capital loss warning.

The new regulation mandates that the person in question must “provide factual information solely” in cases where an influencer is recruited or utilized to persuade potential investors. Influencers and project ambassadors are also forbidden from “promising benefits or returns and may not offer advice on trading or investing in crypto assets.”

More articles


Please enter your comment!
Please enter your name here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Latest article