South Africa’s Advertising Regulatory Board (ARB) has ordered crypto asset providers and influencers to communicate in their advertisements that investing in crypto assets may result in a loss of principal.
ARB stated in its Jan. 23 report that crypto ad providers must provide a balanced message about the returns, benefits, and risks associated with the asset.
Regulated Crypto Ads
Advertising providers must clearly state that past performance does not guarantee favorable future performance, ARB said.
“Announcements must expressly and clearly state that investing in crypto assets may result in the loss of principal as the value is variable and may go up or down.”
The regulator also urged crypto asset providers to discourage investment in cryptocurrencies using credits. In the event that Influencers engage in ad promotion, they are required to share only factual information about the crypto asset, according to the ARB report.
The South African regulator also urged crypto influencers and ambassadors to desist from offering trading or investment advice to their audience on any crypto asset.
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