TechFlow News, June 3: According to The Block, the UK’s Financial Conduct Authority (FCA) has sent letters to football clubs—including Premier League clubs—warning them to exercise caution when entering into sponsorship agreements with unauthorized cryptocurrency firms, in order to protect fans from financial risks.
The FCA stated that some unauthorized cryptocurrency and trading platforms are leveraging sports sponsorships to reach fans. Regulators have instructed clubs to verify the source of sponsorship funds and assess whether such partnerships entail risks of financial crime or reputational damage.
The FCA also noted that funds originating from unauthorized firms may be deemed “criminal property” under the UK’s Proceeds of Crime Act.
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