Advertising “cryptoassests” the right way - lessons from the Arsenal ASA ruling

Cryptoassets (including Fan Tokens, digital currencies) have enjoyed an enormous surge in popularity over the past 12 months, which has given rise to both caution and intrigue in equal measure. It is now increasingly difficult to avoid encountering brands associated with cryptoassets, not least in sport. Almost every major sporting event now has, at the very least, dipped a toe into the (some will say, shark-infested) crypto-waters.

Recently, Advertising Standards Agency, upheld complaint made against Arsenal Football Club, regarding adverts promoting its ‘fan tokens’ developed with commercial partner, Socios.[1]

This article, examines the Arsenal ruling against the broader legal and regulatory landscape and highlights key points clubs and other sports organisations should be aware of when entering into sponsorship agreements involving crypoassets.

Article Outline

• Defining Cryptoassests
• Advertising and promotional rules
• Arsenal Football Club - ASA Ruling
• The importance of responsible advertising
• The risks to the more vulnerable associated with cryptoassets
• Did the ASA ruling overreach?
• The current (and planned) legal framework
• Wrestling with the public perception of cryptoassets
• The concept of digital ‘currencies’
• Loot boxes
• The importance of community engagement.
• Cryptoasset enthusiasts
• Lessons from the past
• Building a ‘fit-for-purpose’ advertising strategy
• What does the future hold?