The U.K. Financial Conduct Authority (FCA) has issued a warning to Premier League soccer clubs regarding potential legal issues stemming from sponsorship agreements with unlicensed cryptocurrency firms.
The FCA cautioned that unauthorized companies might be violating financial promotion regulations through these high-profile sponsorships.
According to the FCA, clubs that engage in such promotions could face legal repercussions, money laundering risks, and damage to their reputations. Firms not included on the FCA's crypto register may only advertise in the U.K. if their promotional content receives approval from an authorized company.
Lucy Castledine, the FCA's director of consumer investments, stated, "Millions of football fans trust their club’s badge. Clubs should not let unauthorized financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans."
Notable crypto sponsorships in the Premier League include OKX's logo on Manchester City jerseys and Kraken's sponsorship with Tottenham Hotspur. While Kraken is listed on the FCA's approved crypto firms registry via its parent company Payward, OKX is not.
The FCA has reached out directly to Premier League clubs to alert them about the risks associated with unauthorized crypto companies and to remind them of their obligations to their supporters.
As of the time of publication, neither Manchester City nor OKX had responded to requests for comments.