Arsenal FC rapped over fan token ads

Arsenal Football Club has been warned by the Advertising Standards Authority (ASA) that its ads for fan tokens risk trivialising investment in cryptoassets and could take advantage of consumers’ lack of experience in this area.

Why it matters

Sports teams and their playing staff are becoming increasingly involved in the promotion of fan tokens, a development which is pushing cryptocurrencies into the mainstream. The ASA ruling highlights both the responsibilities clubs have and some grey areas that they will have to address in future messaging.

What the ASA said

• The Financial Conduct Authority categorises fan tokens as cryptoassets and, as such, the ASA considers they could be used as a form of investment, regardless of how they are promoted. 
• Capital gains tax may be payable on profits from investing in cryptoassets. The ASA considered the potential tax implications were not made sufficiently clear to fans considering investing in Arsenal’s fan tokens.
• Ads need to make clear that fan tokens may need to be bought by purchasing another cryptocurrency.
• Ads should make clear that the value of investments in cryptoassets is variable and that cryptoassets are currently unregulated.

Sourced from Advertising Standards Authority 

_{[Image: arsenal.com]}