South Africa has taken a bold step towards eradicating misleading information in advertisements in the crypto sector. According to the statement released by the advertising board of the country, it has inserted a new clause in the law guarding ads in the industry. The body said that corporate and individuals advertising crypto products must abide by the new standards that are now under the new advertising guidelines of the country.
South Africa wants better crypto ad regulation
According to the published statement, the first clause will require anyone hosting any advert across the crypto sector to specify the full implications. This means that they must expressly state in their adverts that users that invest in their products could end up with losses. The body also said that the adverts need to remind users that their investments could go up, which could result in profits and vice versa.
Furthermore, the advert regulator in South Africa said that at no point during the adverts should any statement say otherwise to the warnings that users could lose all their money. The regulatory body also clarified that anyone making adverts must ensure that their receivers understand it clearly. This means that it should be broken down into easily understandable terms. In addition, adverts must contain all aspects of the products and every element tied to the product.
Regulator targets influencers
The advertisement regulatory body of South Africa also announced that users should be able to calculate every metric tied to the products. The statement mentioned metrics like profits, rate of return, and other things. The body also stated that advertisers should not use a record of a product to persuade users into thinking it is good for them. In addition, the body also noted that unregistered credit providers should discourage people from taking up digital assets on credit.
Social media influencers were also added to the mix, with the regulators releasing a law they should follow. One such is that they should desist from sharing information that looks like trading advice or project profit expected from an investment. An executive of the board mentioned that crypto companies are looking for suitable adverts. Still, their concerns are that the adverts correctly pass their information across to their audience. The board also discovered that harm could be done to users via these means, and they have stood up to tackle it before it becomes a menace.
Source: https://www.cryptopolitan.com/south-africa-unveils-new-crypto-law/