The United Kingdom’s Advertising Standards Authority (ASA) has banned two Arsenal campaigns promoting the AFC fan token. The regulator said they exploited users’ inexperience with cryptocurrencies, according to Evening Standard.
The club’s messages on Facebook and on the website included a video featuring Ben White, Calum Chambers and Kieran Tierney, in which fans were warned about the risk of losing money and urged to exercise caution.
According to the regulator’s statement, the advertising exploited users’ inexperience and presented investments in crypto assets as straightforward, not adequately illustrating their risks.
The club also failed to clearly explain to fans that the tokens are crypto assets, the ASA added.
Arsenal explained that AFC is intended to encourage fan engagement with the club and is distinct from cryptocurrencies used for payments. The club said it reminded fans that only one coin is needed to participate in voting.
The ASA cited the Financial Conduct Authority’s view that utility tokens are cryptoassets. The financial regulator regards them as a complex investment product, subject to volatility and potentially capable of leading to substantial losses.
“We acknowledged that the advertisement did not promote the fan tokens as an investment or financial product. However, they are cryptoassets, and the advertisement did not contain any information about capital gains tax that might be payable on investment profits,” the ASA said.
The regulator concluded that the advertisement was irresponsible and breached the rules.
A spokesperson for Arsenal said the club is committed to following ASA’s guidance.
“We will pursue an independent review of ASA’s decision to seek greater clarity on the Authority’s current position,” he added.
Earlier, ASA forbade seven cryptocurrency-related advertising campaigns. The regulator also initiated an investigation into the marketing campaign of the meme token Floki Inu.
These actions form part of a broader project, the outcome of which should be a set of rules for advertising cryptocurrencies.
Earlier, Arsenal released a fan token on the Socios.com platform.