Friday, January 28

UK halts Arsenal club cryptocurrency advertisements


UK regulators are following in the footsteps of everything that spreads things related to cryptocurrencies.

This time, the Advertising Standards Authority (ASA) banned two fan token promotions belonging to the renowned Arsenal team ($ AFC) for, allegedly, “taking advantage of the inexperience or credulity of consumers, trivializing the investment in crypto assets”, points out BBC Mundo.

The ASA fears that crypto assets are being promoted and that consumers will be “misled” through them, as there are “investment risks”. In addition, it is reported that the sanction is for “not making it clear” that the token is a “cryptoactive that could only be obtained by opening an account and exchanging it for another cryptocurrency that had to be purchased.” he pointed another British medium.

It is worth remembering that Arsenal fan tokens were launched on the Socios.com platform, company specialized in blockchains, last July, a fact reported by CriptoNoticias.

These have the function of closely link the club’s fans with its players through prizes, raffles, among others.

To access the cryptoactive, fans have to download the Socios.com app, create an account and add balance in Chiliz (CHZ), either buying or transferring from another mode. This is the cryptocurrency with which the platform operates and is developed by the company itself.

Arsenal club response

Faced with the sanctions from the regulator, the Arsenal club responded that the organization takes responsibility “very seriously” with regard to marketing aimed at fans.

“We carefully consider communications to fans regarding our promotions and provide information on financial risks,” explained the sports institution.

The English club launched its fan tokens last July through the Socios.com platform.
Source: Arsenal / facebook.com

The club, whose fans are known as the Gunners, assures that they warned about the risks involved in investing in these types of assets. That includes the possibility of losing the money invested. “We recommend that you spend only what you can afford and seek independent financial advice if necessary,” said the Premier League team.

Other clubs that have also launched fan tokens are Manchester City, Juventus, Barcelona and Atlético de Madrid, among many others.

Regulators vs. Sorare

The advancement of regulatory agencies in the UK also reached fantasy football.

Last October, the Gambling Commission opened an investigation into the French platform Sorare, to determine if the company requires a license to operate and if the services it provides constitute games of chance in that nation.

Sorare is not licensed as a gambling company, permission granted by the commission. Because of this, the body considers that the company is outside the regulations of the country and they want to determine whether it requires authorization or not.

This is a game based on the Ethereum blockchain, in which NFTs are issued in the form of collectible digital cards and can also be traded.



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