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Facua asks the CNMV to prohibit the sponsorship of cryptocurrencies in sporting events

MADRID, 1 Sep.

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Facua asks the CNMV to prohibit the sponsorship of cryptocurrencies in sporting events

MADRID, 1 Sep. (EUROPA PRESS) -

Facua-Consumers in Action has addressed the National Securities Market Commission (CNMV) to demand that it prohibit the sponsorship of cryptocurrencies and similar investment services in sporting events, as well as that its advertising is carried out by celebrities, as reported this Thursday in a statement.

The association explains that, after the ban on the advertising of online betting houses and casinos on sports equipment and stadiums, "there are many clubs that have begun to sign sponsorships with cryptoactive platforms" --cryptocurrencies, tokens or NFTs, among others. -- to display advertisements for these businesses on their jerseys or in stadiums. Facua points to Sorare, Degiro or Whale Fin as some of the companies with agreements with soccer clubs.

It also indicates that the International Federation of Association Football (FIFA) signed an agreement with 'Cripto.com' in the spring, for the sponsorship of the World Cup in Qatar, which will be held in November of this year. This company also has agreements with other sports competitions, such as Formula 1 and some NBA franchises.

In this sense, the association demands a regulation similar to the one promoted by the Ministry of Consumption on the advertising of bookmakers. It also recalls that the CNMV already issued a circular in January 2022 that included the rules and principles that should govern the promotion of crypto assets, forcing to offer "true, understandable and non-misleading content, and that visibly include the associated risks ".

The regulator itself pointed out the need for these criteria as it is an area that lacks "complete regulation". It should be remembered that the CNMV has the authority to monitor "massive" advertising campaigns, that is, aimed at more than 100,000 people, which are offered through television, radio, social networks, print media, outdoor advertising or sponsored videos.

Facua asks the CNMV to "take a step further" and completely prohibit the sponsorship of cryptocurrency platforms and other cryptoactives in sports events, preventing brands from being displayed on kits or being part of stadium names, teams or competitions.

The association considers a regulation of this type "essential" with the aim of preventing investment in this type of high-risk products from being encouraged and "reducing the exposure of minors and other vulnerable groups" to the commercial communication of the sector, as well as how to provide an "adequate perception of the risk" that it may entail.

Likewise, it demands that the advertising of these platforms be "restricted and prohibited" on radio and television outside the slots enabled for it. Once again, similar to the regulation of bookmakers, this could be the time slot from one to five in the morning, as proposed by the association.

On the other hand, it asks that the use of the image of famous or media personalities, whether real or fictitious, be prohibited in the advertising of crypto assets, "to prevent them from being used as commercial hooks."

Similarly, it also considers that testimonials from previous beneficiaries, real or imagined, should not be used in the promotion.