According to the UK Advertising Standards Authority, the club failed to warn prospective investors about the hazards of investing in cryptocurrencies.
The British regulator banned the advertising of FC “Arsenal” tokens because it did not comply with the rules that prohibit advertising financial instruments or promoting speculative activity.
According to The Guardian, the Promotion Standards Authority (ASA) in the United Kingdom has prohibited advertising tokens of the London Football Club Arsenal (AFC). Since the project failed to inform prospective investors about the dangers of investing in cryptocurrencies, the regulator determined that AFC tokens were being promoted in contravention of the law. The football club intends to challenge the judgment of the ASA.
The Arsenal club’s tokens are distributed on the Socios.com platform, which collaborates with several of the world’s most prestigious football teams, like Barcelona, Juventus, Roma, Atletico Madrid, and others, to create the tokens. The AFC token is now trading at $3.44 on December 22nd. The price of altcoin grew by 7 percent during the week.
Previously, the Advertising Standards Authority of the United Kingdom found breaches in seven advertising campaigns related to cryptocurrencies, claiming that they did not adequately disclose the risks associated with cryptocurrency investments. In addition to the cryptocurrency exchange Coinbase and trading platforms Kraken, eToro, and EXMO Exchange, the European Commission has prohibited the promotion of these entities. The advertising crypto broker Coinburp and cryptocurrency exchanger Luno were both shut down by the ASA due to the prohibition.