In line with developments in the market, new Advertising Regulations for Crypto Ads have been implemented.
Notice of the prohibition of use of the CAPE FLORA logo mark, in terms of the Merchandise Marks Act, has been published for comment by 5 March 2023 and proposed changes to the Regulations for the Labelling and Advertising of Foodstuffs have been published for comment by 30 April 2023.
On 23 January 2023, the Advertising Regulatory Board added a Clause 17 to Section III of the Code of Advertising Practice which regulates advertising in relation to crypto currency.
Clauses 17.1 and 17.2 provides that 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. Express wording such as “Investing in Crypto assets may result in the loss of capital” must be used.
Further requirements include that the crypto service or product must be easily understandable for the intended target audience; adequate substantiation must be available for rates of return, projections and forecasts; advertisements by providers who are not registered credit providers should not encourage the purchase of crypto assets on credit; and social media influencers or ambassadors promoting a crypto product or service must ensure that the requirements regarding influencer marketing are met. Influencers and ambassadors may not offer advice on trading or investing in crypto assets and may not promise benefits or returns.
Source: Section III of the Code of Advertising Practice v2023.1 (incorporating v2021.1)