Advertising Standards Authority (ASA) is cracking down against non-compliant cryptocurrency advertisements.
Arsenal was one of many clubs that partnered with Chilliz to launch a fan token. The club promoted its fan token AFC via its official Facebook page on August 12. This was banned by the ASA for allegedly violating their advertising rules. According to the agency, the post didn’t highlight the risk involved in the investment.
A BBC report claims that the monitor claimed that Arsenal’s website’s topic – specifically a page published August 6, 2021 with the title “$AFC Fan token: Everything you need” – violated advertising rules.
Today, we published 25 rulings. One of them bans Arsenal from posting about cryptoassets. @BBCNews https://t.co/UohrSDudg3
— ASA (@ASA_UK), December 22, 2021
The ads watchdog found that both commercials took advantage of consumers lack of experience and trivialized crypto investments. BBC quotes Arsenal Football Club’s official as saying: “We take responsibility to our fans seriously.” Stating that all communications with them about offers were evaluated and they made available information regarding financial risks.
The ASA’s latest regulatory actions add to a slew other similar decisions earlier in the year. This is despite the fact that the body has been diligently investigating and closing down fraudulent cryptocurrency advertisements. The independent advertising authority recently removed a number of cryptocurrency-related ad campaigns for several major industry players, including Coinbase and Kraken. The ads “irresponsibly exploit consumers’ inexperience and fail to illustrate the risks of an investment,” they stated.
Another Luno Exchange ad campaign was removed by the ASA in May. A picture of Bitcoin (BTC), was used on subway posters that stated: “If Bitcoin is being seen on the Underground, it’s high time to buy.”
Arsenal is just one of many top-tier clubs to have teamed up with blockchain companies to create a fan token. West Ham United, a soccer team based in London that plays in the English Premier League, teamed up to create a fan token ecosystem with blockchain platform Socios.com in 2019.
Bundesliga giants FC Bayern Munich has a history of working with blockchain projects. Last fall, Stryking Entertainment teamed up with FC Bayern Munich to create digital collectibles for its players.
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