- Arsenal was recently called out for this practice by the ASA.
- The government has been reluctant to do anything about cryptocurrency.
Digital investment trends like cryptocurrency and non-fungible tokens (NFTs) might face a regulatory crackdown in 2022 after mounting concerns that they could harm vulnerable young people.
Football teams, players, and internet influencers have promoted fans’ “tokens” and digital artworks. Even though they have many characteristics with speculative investments and gambling games, which are both strictly regulated in the UK, they are not heavily regulated. Aside from the Advertising Standards Authority (ASA), no government organization is specifically tasked with policing the crypto-asset market for unethical behavior.
So far, the government has been reluctant to do anything about cryptocurrency, which is why MPs and activists are demanding that it be included in a forthcoming comprehensive gambling review and give the Financial Conduct Authority (FCA) greater authority.
Conservative MP Richard Holden stated:
“It is the Wild West, this grey area between highly leveraged financial investments on the one hand and these products which could quite easily and sensibly be considered to be gambling. There needs to be a clear differentiation there in order to protect people.”
NFT’s and Fan Tokens Included
Many smaller “coins” exist in addition to well-known cryptocurrencies like Bitcoin and Ether, often purchased by investors who believe they will appreciate in value over time. Individual ownership of digital photos may be proven using the same blockchain technology as money. Football fans who put their money into NFTs pushed by players like Wayne Rooney and John Terry run the danger of losing it.
While fan tokens are touted as an investment in the club, they provide little tangible advantages and have lost value for some time. Arsenal was recently called out for this practice by the ASA.
A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.