UK's Advertising Standards Authority (ASA) has continued to intensify its efforts to curb the widespread promotion of "irresponsible" crypto ads in the nation, with the popular football club, Arsenal, falling short of its rules.
Arsenal FC has recently been reprimanded by the regulatory body over a Facebook post and the content of its web page, which was discovered to be promoting crypto-based fan tokens.
Arsenal had partnered with Socios, a blockchain-based platform that uses blockchain technology to issue fan tokens and other digital assets to sports organizations, to launch its fan token, $AFC.
The fan token can only be purchased on the Socios app using the platform's native currency, Chiliz ($CHZ), and aims to bring Arsenal fans closer to the club.
Per the report, the ASA claimed that the post and website both contained misleading information that could cause ignorant supporters to lose their funds while investing in cryptocurrencies and subsequently banned them.
Additionally, the ASA pointed out that the Club failed to disclose in both posts that the fan tokens were crypto assets that had to be bought using another cryptocurrency.
"We acknowledged that the ads did not promote the fan tokens as an investment or financial product. However, the product was a crypto asset regardless of how it was promoted and the ads did not contain any information that Capital Gains Tax (CGT) could be payable on profits from investing in crypto assets, " the regulator said.
In response, Arsenal argued that the promotion of the fan tokens on the Facebook post and its website was geared toward raising awareness of the opportunity for fans to interact with their favorite players and participate in some official Club decisions.
Arsenal also asserted that the tokens were "materially different" from the various other cryptocurrencies that are used as a payment medium.
Nevertheless, the ASA strictly warned the Club that the ads must not appear again in the form it was complained about.
Arsenal Agrees to Comply
A spokesperson for Arsenal stated that the Club will try to comply with the ruling by the regulatory body. However, it intends to pursue an independent review
"We take our responsibilities with regard to marketing to our fans very seriously… We will endeavour to comply with the ASA’s guidance regarding future communications in this fast-moving area, however, we will be seeking an Independent Review of the ASA’s ruling to seek greater clarity on the ASA’s current position."
This latest move comes as part of a much wider crackdown on crypto ads by the ASA. A few weeks ago, the regulator banned seven "irresponsible" crypto ads, including that of eToro, Coinbase, and Papa John's.
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