The UK's financial watchdog has warned soccer clubs, including those in the Premier League, about "questionable sponsorship deals" involving unauthorized crypto companies.
In a Wednesday press release shared with The Block, the Financial Conduct Authority said it had sent a letter to soccer clubs, cautioning them against exposing fans to financial risks through sponsorship deals with crypto firms that aren't allowed to operate in the country.
The FCA noted that several unauthorized crypto and trading platforms have targeted "unwitting football fans" through sponsorships with sports clubs.
"Millions of football fans trust their club’s badge," Lucy Castledine, director of consumer investments at the FCA, said in the press release. "Clubs should not let unauthorized financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans."
In the letter, Fiona Mackinnon-Miller, head of the FCA department overseeing scams, promotions, and consumer investments, instructed clubs to ensure they understand the source of sponsorship funds and assess whether such arrangements could expose them to financial crime risks or reputational damage.
