The United Kingdom’s Culture, Media, and Sports Committee alleges that the promotion of crypto assets and fan tokens in professional sports is detrimental to supporters.
“The promotion of crypto assets in professional sport is putting supporters at risk of financial harm and potentially damaging the reputations of clubs,” the statement declares.
The Volatility of Fan Tokens’ Prices Poses Risks for Sport Supporters In a recent statement, concerns over the increasing prevalence of fraudulent non-fungible token (NFT) projects have been voiced by the committee. They call on the UK government to tighten regulations on promoting these projects at all levels.
Furthermore, the committee encourages the government to prohibit fan tokens in football as a club’s metric of engagement with its supporters. The group of MPs attributed this decision to price volatility. They also cited the supporters’ lack of confidence in investing in these projects.
However, the UK Financial Conduct Authority (FCA) has recently enforced rigorous regulations on marketing crypto to the public. Among these rules is a prohibition on incentives based on referring friends.
Dame Caroline Dinenage MP, the chair of the committee, criticized sports clubs for using crypto with fans. She claimed that the majority ultimately fail:
“In the world of sport, clubs are promoting volatile cryptoasset schemes to extract additional money from loyal supporters, often with promises of privileges and perks that fails to materialise.” (...)