The Financial Conduct Authority (FCA), the United Kingdom's financial regulator, has issued a warning to football clubs, including those playing in the Premier League, over sponsorship partnerships with crypto companies that are not licensed to operate in Britain.
According to the FCA, some crypto firms and trading platforms may be using the popularity of football clubs to promote financial products to millions of supporters even though they are not allowed to offer such services in the UK.
This situation could potentially breach the country's financial promotion rules.
The FCA also warned that clubs that work with unlicensed crypto companies could face legal risks, money laundering issues and reputational damage if the company is involved in suspicious activities.
FCA's Director of Consumer Investments, Lucy Castledine, said millions of fans trust their beloved club's brand and logo.
Therefore, clubs should not allow illegitimate financial firms to take advantage of that trust to market risky products to supporters.
The FCA also explained that fans who invest through unregulated platforms risk losing all their money and may not have any protection from the authorities if something goes wrong.
At the same time, UK Sports Minister Stephanie Peacock acknowledged that sponsorship revenue is a significant source of income for the football industry.
However, she stressed that supporters have the right to know whether the companies associated with their clubs are responsible, transparent and safe to use.
The warning pays particular attention to several Premier League clubs that have crypto-related sponsors or partners, including Arsenal, Aston Villa, Burnley, Chelsea, Crystal Palace, Everton, Leeds United, Liverpool, Manchester City, Newcastle United, Nottingham Forest, Tottenham Hotspur and West Ham United.
