Yesterday, I led a Westminster Hall debate on the subject of cryptoasset promotions in sport. Cryptoassets are usually either currencies (Bitcoin being the most famous) or so called NFTs (non-fungible tokens). Both of these are traded on online exchanges and have frequently been part of speculative bubbles.
Our sports teams occupy a very special place in our communities. Fans of those teams have a special bond to the club that goes far beyond being a customer.
When an individual club, or a sport as a whole, takes fans for granted, or seeks to exploit them, those bonds are not only frayed but lasting damage can be done to the community as a whole. I fear this is what is happening in the case of some of the crypto tie-ups these clubs have been making.
I highlighted the four main issues with crypto promotions in sport:
the misleading promotion of crypto
the lack of consumer protection
the lack of due diligence undertaken by clubs
the monetising of fan engagement
We need both better statutory regulation and better self-regulation in order to address these issues.
You can watch my contribution to the debate here.