UK regulator bans Arsenal fan token ads amid crackdown on crypto
The UK’s advertising watchdog has banned adverts by Arsenal promoting its fan token amid a crackdown on crypto content.
The Advertising Standards Agency (ASA) took issue with an advert, published on the football club’s Facebook page in August, which encouraged people to buy fan token $AFC in order to vote on minor decisions made by the club, such as which song to play when Arsenal wins a game.
The regulator accused Arsenal of taking advantage of inexperienced investors, trivialising digital asset investment and failing to make it clear that fans wishing to buy the $AFC tokens would first have to purchase another crypto asset.
“We told Arsenal Football Club PLC to ensure that their future ads did not trivialise investment in crypto assets and did not irresponsibly take advantage of consumers’ lack of experience or credulity by not making clear that Capital Gains Tax could be due on crypto asset profits,” the ASA wrote in a statement, ruling that “the ads must not appear again in the form complained about.”
A spokesperson for Arsenal said: “We take our responsibilities with regard to marketing to our fans very seriously. We carefully considered the communications to fans regarding our promotions and provided information regarding financial risks.
“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,” the spokesperson added.
In defence of its actions the Arsenal pointed to information about investing provided on the fan token section of its website which included a warning not to spend more than fans could afford to lose and explained that the price of assets may be volatile. The football club also pointed out that the requirement to tell fan token holders to pay capital gains tax went beyond FCA standards for regulated investments.
The ruling comes amid an ASA campaign against crypto adverts with the watchdog this month raising a ‘red alert’ about the issue. Last week pizza chain Papa John’s, Coinbase and eToro were all called out by the regulator which banned ads that failed to adequately explain the risks of investing in crypto.
Major football clubs including Paris Saint-Germain, Barcelona and Manchester City have also launched fan tokens.
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