the Advertising regulatory board of South Africa, a self regulatory board by the ad and public relations industry…have come up with an initiative to inform the people on the risks of crypto while advertising rather than the advice to buy it or a promotion.
NEW SET OF RULES FOR THE MEDIA INFLUENCERS…
Also new rules are about to come up for using the social media influencers in the ads.
After the recent incident with the US reality TV star and influencer Kim Kardashian recently settled with the Securities and Exchange Commission for $1.26 million…after creating a hype on EthereumMax without disclosing she was paid.
Now it is clear a set of rules will be regulated on the works of the stars and celebrities to promote crypto things.
NEED FOR NEW RULES?
The people have the right to know the risks and uncertainty on what they invest in instead of just getting flattered by their admirers and celebrities.
This is a wonderful example of an industry that sees the harm that could be done in its name, and steps up to self-regulate the issues without being forced to do so by the government,” Gail Schimmel, chief executive officer of the ARB, said in an emailed statement.
The updated ARB guidance also stated that Crypto ads must expressively and clearly state that investing in crypto involves uncertainties as the value is a variable which can move up and down and can result in loss with a great probability.
All these statements are a sort of negative shade from the side of an organization which aims for profit whereas the credibility of an organization toward its customers must be emphasized more.
Social media influencers and ambassadors should only project factual information rather than offer advice on trading or promising guaranteed returns.
FIRST STEP BY SOUTH AFRICA
Even though this is a bold decision by the South African government they are doing this for the welfare of its citizens who are entering the crypto world in a large number.
And they are the latest to seek to ensure crypto publicity in a fair and honest way.
Following them the UK government also has also proposed their own legislation to keep and control the crypto promotion in an honest manner.
HONESTY IS THE BEST POLICY
misleading advertising can harm the reputation of the cryptocurrency industry as a whole. Honest advertising can help build trust and credibility within the community, and promote fair and safe investment opportunities.