Crypto.com pulls out of a sponsorship deal with UEFA for the Champions League at the last moment, citing concerns about increased crypto regulation and potential legal trading restrictions in the UK, France, and Italy.
The bear market also plays a major role in the decision, as the crypto market has seen a total of $2 trillion in market value lost in the last six months alone.
Through the agreement, which was worth £428m set over five seasons, Crypto.com was going to replace Gazprom as sponsor after UEFA severed ties with the Russian energy provider out of support to Ukraine.
In a statement to the BBC, Haider Rafique, Global Marketing Chief at OKX explains: “The European regulatory landscape as it applies to the crypto space is nuanced and still evolving. The changing regimes focus on regulatory concepts, like consumer protection and anti-money laundering, that are generally welcomed by the industry.”
He added: “Keeping abreast of any changes to these frameworks and adjusting internal practices accordingly will help crypto businesses succeed in the region long-term.”
This is not the first time a blockchain service provider has sponsored a football team. According to UEFA, the cryptocurrency industry has been a major revenue provider during the pandemic. Both Chelsea and Atletico Madrid also signed an agreement with trading platform WhaleFin and Manchester City have OKX as their training kit partner, and Watford was previously sponsored by Bitcoin and accepted the cryptocurrency at the club.
Crypto.com also has sponsorship deals with Formula 1, the Ice Hockey World Championship and the 2022 Fifa World Cup in Qatar.
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