Advertising Regulatory Board (ARB) in South Africa introduced new ruleswarning crypto investors about the possibility of capital loss.Cryptocurrency advertising should be simple and understandable for the target audience and give a balanced view of the profitability, features, benefits and risks associated with the product or service. Industry members hope this will make it harder for scams such as Mirror Trading International, which promised a yield of 10% per month.
According to the new rules:
ARB was created by the industrymarketing and communications to protect consumers through self-regulation of advertising, including packaging. “The rules of ethical advertising are non-negotiable for us as an industry,” says Marius Reitz, general manager for Africa at crypto exchange Luno, who led the project. We do not want unscrupulous advertisers to make statements that mislead vulnerable consumers about the reality of crypto investments.”
“This is not only beneficial for consumers, but also forcompanies that comply with these codes. The data shows that responsible advertising helps companies build better relationships with customers, increasing trust, loyalty and ultimately customer retention.” ARB's decision to specifically include cryptocurrencies in its advertising standards is welcome as it lays the foundation for better consumer protection.