The English Premier League has asked the government to investigate whether rules on how cryptocurrency firms may be treated are being followed. The request came after fears have been raised that some companies in the industry could be used as a tool for money laundering and terror financing.
The “future of cryptocurrency 2021” is a fear that has been present in the crypto industry. The English Premier League has started an investigation to see if any crypto firms are involved with match-fixing.
The English Premier League is to examine the expanding relationships between crypto businesses and football teams in the League, according to the British daily broadsheet The Times.
Premier League clubs rely on cryptocurrency deals.
The financial effect of Covid-19, as well as the prohibition of public meetings, was a major setback for football teams all around the globe.
During that time, it is estimated that Europe’s 20 largest clubs together lost more than €1 billion in income.
More unusual income sources, such as the introduction of fan tokens, have gained appeal as a solution to fill the void. Socios, the largest player in this space, has subsequently partnered with Manchester City, Arsenal, Everton, Aston Villa, and Leeds to sell fan tokens using its $CHZ token.
Fan tokens, on the other hand, are exploitative, according to a spokeswoman for the Football Supporters Association, since they commercialize fan interactions in exchange for a vote in minor club decisions.
“Crypto-based fan token partnerships are either attempting to monetize minor issues that might easily be resolved via online surveys of season ticket holders, or they are erecting financial hurdles to true supporter participation.”
In addition, several teams have chosen for direct sponsorship with cryptocurrency companies. Southampton, for example, recently signed a training equipment sponsorship arrangement with the educational website learncrypto.com. Watford has also joined stake.com, which bills itself as a Bitcoin casino and sports betting site.
Manchester City recently canceled a relationship with crypto start-up 3Key due to worries about the company’s unknown reputation, specifically its lack of a digital presence.
“Following the club’s recent engagements with 3Key Technologies, Manchester City is currently undertaking further investigations into 3Key Technologies, and the relationship has been halted until acceptable conclusion of all of those investigations.”
Officials from the Premier League are worried about the lack of regulation.
Following the rising influence of cryptocurrency corporations on Premier League teams, as well as reports that the UK government plans to prohibit football clubs from having gambling sites as their primary sponsor, it seems that the net is closing.
While it’s risky to link gambling with cryptocurrency because of the industry’s wild west image, the two are, properly or wrongly, extensively intertwined in the mainstream.
Aside from that, the Premier League has raised concern about cryptocurrencies’ regulatory position. The absence of regulation, in particular, and the possible damage this might have on the Premier League’s and its teams’ reputations.
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