The UK’s advertising regulatory watchdog, The Advertising Standards Authority (ASA) has <a href="https://www.ft.com/content/f021c1b7-9207-4f04-90e6-885c48cd12ad" target="_blank" rel="nofollow noopener">ruled</a> against Arsenal Football Club’s promotion of fan tokens, claiming to be misleading supporters over the risks of crypto investment. The ruling underlines widening concern over the numerous sponsorship deals that have taken place this year with crypto platforms and regional football clubs.
<h2><strong>UK Regulator Criticizes Arsenal Over Crypto Promotion</strong></h2>
Earlier this year, Arsenal formed a partnership with blockchain platform Chilliz to launch a fan token. In August, the club promoted its fan token on its official Facebook page and website featuring three of its players.

Investing over the two Arsenal ads that ran online in August, <a href="https://www.cryptoknowmics.com/news/a-uk-body-has-taken-action-against-misleading-crypto-ads/">UK’s</a> Advertising Standards Authority (ASA) has slammed the football club over the promotion of the fan tokens.

Per the regulatory watchdog, the Arsenal FC club was “taking advantage of consumers’ inexperience or credulity, trivializing investment in crypto assets, misleading consumers over the risk of investment and not making it clear the ‘token’ was a crypto asset.”

<em>“The ads must not appear again in the form complained about,”</em> the ASA stated. <em>“We told Arsenal Football Club PLC to ensure that their future ads did not trivialize investment in crypto assets and did not irresponsibly take advantage of consumers’ lack of experience or credulity by not making clear that CGT could be due on crypto-asset profits.”</em>

The ruling could have implications for other English football clubs including Crystal Palace, Aston Villa, Everton, Leeds, and Manchester City forming partnerships with Socios looking to launch their own fan tokens.

Defending itself, Arsenal argued that both the ads complied with the advertising regulations in the country and that the products were <em>“utility tokens used to encourage fan participation and therefore were materially different to cryptocurrencies.”</em>

ASA has made a clear stance against the growing number of cryptocurrency promotions in the country calling it a "red alert priority". Earlier last week, the regulatory agency said that broadening its cryptocurrency rulings to include tokens will be at the top of their agenda for 2022.

UK Regulator Slams Arsenal Fan Club Over Fan Token Promotion

The UK's Advertising Standards Authority (ASA) has ruled against Arsenal Football Club’s promotion of fan tokens.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

UK Regulator Slams Arsenal Fan Club Over Fan Token Promotion

Top Picks