South Africa’s New Crypto Guidelines Require Celebrities to Warn of Financial Risk

Africa’s advertising regulatory board released new guidelines obliging crypto advertisements to “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.” crypto companies, such as, coinbase, and the since-collapsed crypto exchange ftx, poured billions of dollars into publicity campaigns over the course of 2020 and 2021. major celebrities, including curb your enthusiasm creator larry david, jimmy fallon, kim kardashian, floyd mayweather jr., and tom brady, were featured in crypto-related ads, and some of them were even named in lawsuits pertaining to the collapse of investments they marketed.

Crypto-related adverts were broadcasted at the super bowl, stitched into the kits of major sports teams, and starred the aforementioned celebrities. after the broad crypto collapse, some of the celebrities were named in lawsuits pertaining to the collapse of investments they marketed, such as larry david for having appeared in an advert that encouraged investors to “pour billions of dollars into the deceptive ftx platform.”

Companies have spent billions of dollars on publicity in 2020 and 2021 in order to promote their products and services. as a result, celebrities and influencers must now warn potential buyers that crypto investments may lead to financial ruin, as stated in the new guidelines released by the south african advertising regulatory board. a notorious segment of comedian jimmy fallon’s “tonight show” included an interview with paris hilton in which the two awkwardly gushed over their newly purchased “bored ape” nfts, without mentioning that they had been gifted the nfts as part of a marketing campaign. additionally, advertorials now have to be both balanced and simply worded while avoiding the presentation of past performance in such a way that “creates a favorable impression of the advertised product or service.”

By Evey Lovelace

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