The latest update in the UK crypto crackdown saw the nation’s advertising watchdog, the Advertising Standards Authority (ASA) rule against two promotions of Arsenal’s fan tokens ($AFC). Today, the ASA noted that upon investigation of $AFC’s advertisements dated to August, it was determined that Arsenal had broken UK’s advertising law. ASA claimed that the fan token ads were“trivialised investment in cryptoassets” and that they were “misleading” in failing to highlight investment risk.
“Irresponsible” and “Misleading” ads by Arsenal
Earlier this August, Arsenal launched its advertising campaigns for the club’s fan token on its website and social media platform, Facebook. The football club offered fans the opportunity to weigh in on club decisions upon purchase of $AFC, further noting that the number of tokens owned by a fan will be directly proportionate to their vote’s value. However, in order to accumulate $AFC, the fans were first bound to buy the digital currency, Chiliz via crypto platform, Socios.
The ASA ruling specified that Arsenal’s Facebook promotions “did not make clear the ‘token’ was a crypto-asset, which could only be obtained by opening an account and exchanging with another cryptocurrency which had to be purchased”. Additionally, the watchdog determined that Arsenal had broken the updated advertisement rules in the UK and that, “the ads must not appear again in the form complained about”
The football club continued to defend itself post the ASA ruling, arguing that they had assured of a “carefully considered” communication with its fans. Arsenal claimed that they had incorporated price volatility risks on their website promotion. However, failed to add the same in their Facebook ads of the fan token.
“dependent on supply and demand, and can therefore go up as well as down…should be aware that they could lose some or all of their money invested”, the club warned on their website promotions.
Furthermore, according to BBC, the club plans to seek an “independent review” of the ASA’s ruling to ascertain greater clarity on the “ASA’s current position”.
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