UK rejects crypto tokens engagement in the sports sector
The UK Sports Committee asserted that the promotion of crypto assets & NFTs in sports games is not a valid engagement metric.
The UK is a very big region for the crypto sector where the Financial Conduct Authority (FCA) regulates the crypto sector under the traditional & some new rules, alongwith the traditional financial market. This regulatory body has been highly strict against crypto-linked suspicious activities.
On 11 Oct 2023, The United Kingdom’s Culture, Media, and Sports Committee published its report on the surging activities of the cryptocurrencies (meme tokens, fan tokens, sports game focussed tokens) in the gaming & sports industry amid the surging fraudulent activities related to crypto & NFTs.
The committee said that the value of the crypto assets remains highly volatile and the fraud related to cryptocurrencies is increasing, so the use of crypto fan tokens in the sports industry may cause some significant loss to the sports supporters.
The committee mainly targeted those football clubs that used fan tokens as a utility case to bring engagement between the game & game supporters.
These types of crypto tokens not only have engagement in offline sports games but also in online games, where a special kind of crypto tokens & NFTs provide ability to the holders to gain access in the game & ability to connect with other players within the game.
As per reports in the past couple of years, gaming tokens & fan tokens emerged as a big business model for the companies to generate profit.
Here the latest statement on the crypto fan tokens by the UK’s committee doesn’t mean that the use of such kinds of tokens in the gaming sector will not be allowed but there are huge chances that the UK’s financial regulatory body will bring new strict rules & laws to prohibit the companies which are making a huge amount of unethical profit via special tokens.
Recently the FCA agency released an updated set of guidelines for the crypto companies to make the crypto risks more visible to the investors & prohibit potential illicit crypto activities away.
Read also: Dogecoin (Doge) found in the source code of Elon Musk’s Cyber-Truck
