UK watchdog slams Arsenal FC for promoting crypto token

UK watchdog slams Arsenal FC for promoting crypto token

London football club Arsenal FC have received a slap on the wrist from Britain’s advertising watchdog after failing to warn fans about the risks associated with crypto investments in their “fan token” promotions.

The Advertising Standards Authority (ASA) has confirmed its decision against the Premier League club, despite an appeal, after two adverts promoting the Arsenal fan token failed to meet regulator standards.

The first announcement, a website post published on August 6 last year, was an explainer describing the token and how it could be used in the Socios app.

The second advertisement was a Facebook post uploaded six days later featuring Arsenal footballers promoting the token, along with text that briefly detailed $AFC, Chilliz Cryptocurrency ($CHZ) and Socios App.

The new description included on the Arsenal official to place.

Read more: European Football Clubs Earned $200 Million Selling Crypto Tokens to Fans

The ASA found that the Facebook post did not clearly state that the tokens were crypto assets and failed to mention that obtaining $AFC (publicly, as opposed to the free gift) required both an account. crypto exchange and buying $CHZ. cryptocurrency.

The two advertisements also came to light: “misleading because they did not illustrate the risk of the investment(emphasis added) and “irresponsible because they took advantage of consumer inexperience or credulity and trivialized engagement and investment in crypto assets.”

“By not specifying that capital gains tax (CGT) might be payable on profits derived from investing in paid fan tokens, we concluded that the advertisements were irresponsible and violated the Code.”

Now the The ASA ruled that advertisements “must not reappear in the offending form”.

The watchdog also told Arsenal:

  • to clarify that investments with paid Fan Tokens are subject to volatile markets and are unregulated crypto assets,
  • not to mislead consumers by omitting elements such as the need to open a crypto asset exchange account and purchase various cryptocurrencies in order to purchase the tokens,
  • to ensure that future advertisements are not trivialized by omitting risk warnings and taking advantage of consumers’ lack of experience with crypto.

Read more: Coinbase compares poor performance to the cyclical nature of crypto

Arsenal defended $AFC ads

Arsenal attempted to appeal the first complaint Last year. The Premier League giant stated that the warnings provided were sufficient and that the target audience understood cryptocurrency and Socios through their various sponsorships and partners.

The club also argued that there was no regulatory basis for including information regarding capital gains taxes resulting from trading the tokens, despite them being crypto assets and as such subject to such rules.

In a statementArsenal said: “We are disappointed with the ASA’s decision to uphold their decision following our appeal. We have complied with the ASA guidelines since the original ruling, and will continue to comply in our future communications. in this rapidly evolving field,” (via Telegraph).

It should be noted that fan tokens are not the same as NFTs.

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