The advertising regulatory body (ARB) of South Africa has ordered influencers and providers of cryptocurrencies to explicitly state in their advertisements that buying cryptocurrencies carries the risk of capital loss.
In its assessment from January 23, ARB noted that cryptocurrency advertisement providers must convey a fair message regarding the risks, advantages, and rate of return of the asset.
According to ARB, advertisement vendors must explicitly declare that past success does not ensure future success.
“Advertisements must expressly and clearly state that investing in crypto assets may result in the loss of capital as the value is variable and can go up as well as down.”
The regulator encouraged crypto asset providers to restrict credit-based cryptocurrency investment. According to the ARB report, influencers are required to give only genuine information regarding the crypto asset while they are pushing marketing.
The South African regulator also asked cryptocurrency influencers and ambassadors to refrain from advising their audiences to trade or invest in any cryptocurrency asset.
