The Advertising Regulatory Board (ARB) of South Korea is taking steps to safeguard customers by including a new rule in the Code of Advertising Practice that addresses bitcoin goods and influencers.
The Advertising Regulatory Board was established by the marketing and communications industry in South Africa to safeguard the country’s consumers via advertising self-regulation.
According to a statement released by the ARB on January 23, the new regulations were developed after the ARB spoke with the cryptocurrency sector and reached a consensus with them. The guidelines’ primary objective is to prevent unethical advertisements from misleading customers.
It went on to say that this is a great example of a business that recognizes the potential damage that may be caused in its name and takes the initiative to self-regulate the problems rather than waiting for the government to compel it to do so.
In another part of the report, it was suggested that social media ambassadors and influencers should refrain from giving trading advice or guaranteeing guaranteed profits and instead focus on sharing only genuine information.
In their words:
“Where influencers or ambassadors are used to promote a crypto asset product or service, they may share factual information only. Influencers and ambassadors may not offer advice on trading or investing in crypto assets and may not promise benefits or returns.”
Some of the largest cryptocurrency frauds in history have been perpetrated on the South African public. For example, a South African named Cornelius Johannes Steynberg recently committed a $1.7 billion bitcoin scam.
The Commodity Futures Trading Commission (CFTC) filed charges against him, alleging that he founded and ran Mirror Trading International (MTI), a company that promised customers easy money using bitcoin.