Namibia’s Virtual Assets Act 10 of 2023 places a strong emphasis on transparency in the advertising of initial token offerings (ITOs).
The provisions outlined in Section 28 aim to safeguard investors by enforcing accuracy and consistency in promotional material.
Guidelines for Advertisement Accuracy:
Mandatory Compliance:
Section 28(1) specifies that a licence holder, functioning as a token issuer, is obligated to ensure that any advertisement related to ITOs adheres to specific criteria.
Advertisements must be accurate, non-misleading, clearly identifiable as such, and in harmony with the information contained in the prospectus.
Regulatory Oversight:
Section 28(2) grants authority to the Regulatory Authority to establish criteria, through rules, governing the publication, form, and content of ITO-related advertisements.
These criteria may include provisions prohibiting certain types of advertisements or stipulating the necessary and prohibited content.
Corrective Measures:
If an advertisement is found to be non-compliant, false, inaccurate, or misleading (Section 28(4)), the Regulatory Authority can issue directives to rectify the situation.
Directives may involve amending or removing the advertisement, offering a corrective approach to align with regulatory standards.
Public Notification:
Section 28(7) mandates the Regulatory Authority to communicate its actions under this section to the public. This includes publishing notices on its website and in widely circulated newspapers in Namibia.
Legal Implications and Investor Protection:
The Regulatory Authority’s ability to intervene in non-compliant advertisements underscores the commitment to investor protection and the maintenance of a fair and transparent virtual asset environment.
Section 28(6) clarifies that these regulatory measures do not impede any legal remedies available to individuals aggrieved by misleading or non-compliant advertisements.
In essence, Namibia’s Virtual Assets Act incorporates a robust framework to ensure that information presented in advertisements aligns with the actual offerings, thereby fortifying investor confidence and market integrity.
