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Arsenal Loses Appeal Over Misleading Crypto Advertising

Premier League giants Arsenal F.C. have lost an appeal and been given a second warning by the U.K.’s Advertising Standards Authority (ASA) over the “misleading” marketing of non-fungible tokens (NFTs).

The post Arsenal Loses Appeal Over Misleading Crypto Advertising appeared first on BeInCrypto.

Premier League giants Arsenal F.C. have lost an appeal and been given a second warning by the U.K.’s Advertising Standards Authority (ASA) over the “misleading” marketing of non-fungible tokens (NFTs).

The club was censured in Dec over the material by partner Socios, and appealed the decision, only for the ASA to uphold the original complaint, but on revised grounds.

Last Aug, Arsenal posted an advertisement on its Facebook page telling fans that they could decide the song played in the stadium after a victory by downloading the Socios app and buying fan tokens.

Socios is a leading creator of fan tokens that describes itself as giving fans a “share of influence” over their teams.

The advertisement on the club’s Facebook page was followed by a post on the website titled “$AFC Fan Token: Everything you need to know.” Despite the seemingly detailed nature of the post, the ASA flagged the advertisement on grounds that misled investors and did not properly highlight the risk of cryptocurrency investment.

Arsenal’s response was swift with the club arguing that the website post was detailed enough to point out the risks of investing in digital assets. The club argued that fans were urged to buy only what they could afford and lodged an appeal to challenge the ruling.

ASA upholds decision

The ASA upheld its decision on several grounds. The authority wrote in its ruling that the advertisement was misleading because it failed to disclose to consumers that the tokens were crypto assets, “which could only be obtained by opening a crypto assets exchange account, and in the case of paid-for fan tokens, required the purchase of another cryptocurrency.”

Other reasons for the decision included taking advantage of the inexperience of consumers and trivializing the act of investing in cryptocurrencies.

Arsenal was warned by the ASA that the advertisement in question must not appear again in the “form complained about.” The regulator expects Arsenal’s digital asset marketing to be clear and should not omit the risks associated with cryptocurrency investments. 

Industry braced for increased scrutiny

Across the U.K., regulators are doubling efforts to exercise control over the cryptocurrency industry. The country’s Financial Conduct Authority (FCA) was in the news for announcing the tightening of digital assets firms authorized to do business in the country.

Both the FCA and ASA have pledged to work in concert to rid the ecosystem of substandard crypto advertisements. Following this, a number of companies have received warnings over the nature of their advertisements including eToro and Papa John’s Pizza.

The post Arsenal Loses Appeal Over Misleading Crypto Advertising appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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CFTC charges Digitex founder over illegal crypto derivatives platform

The Commodity Futures Trading Commission (CFTC), has brought charges against Adam Todd, the founder…

The post CFTC charges Digitex founder over illegal crypto derivatives platform appeared first on CoinJournal.

The Commodity Futures Trading Commission (CFTC), has brought charges against Adam Todd, the founder of crypto derivatives platform Digitex, according to court documents filed in a US court.

The futures market regulator is suing Todd over his operating of an unregistered derivatives trading venue in violation of the Commodity Exchange Act (CEA), the filing showed.

Digitex used multiple entities

As per the CFTC charges filed in the Southern District of Florida, Todd is accused of building and operating the Digitex crypto derivatives trading platform illegally. The defendant is said to have used multiple entities to bring his services to the public, with cited entities being Digitex LLC, Digitex Software Ltd., Digitex Ltd. and Blockster Holdings Ltd. Corp.

The CFTC seeks monetary penalties, disgorgement, a ban against Todd and Digitex.

The action against Digitex is the latest complaint by the CFTC against a crypto entity or individual as regulators increasingly spotlight violations across the industry.

Last week, the agency fined founders of bZeroX Tom Bean and Kyle Kistner for violating the Commodity Exchnage Act in their offerig of leveraged and margined products to retailers. The regulator also filed a complaint against decentralised autonomous organisation Ooki DAO.

The post CFTC charges Digitex founder over illegal crypto derivatives platform appeared first on CoinJournal.

Source: CoinJournal: Latest Bitcoin, Ethereum & Crypto News

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