According to reports from the BBC, Crypto.com has cancelled its sponsorship of the UEFA Champions League.
The deal, worth £428 million over five seasons, fell through at the “last minute” due to concerns about stricter cryptocurrency regulations.
Because of the conflict in Ukraine, UEFA severed ties with the Russian energy-supply giant, Gazprom. The cryptocurrency trading platform was supposed to replace Gazprom. The concerns are thought to be related to potential legal trading restrictions.
Digital assets have risen from the economic fringes to the mainstream in recent years. This is due to the increasing number of football sponsorship deals.
Atletico Madrid and Chelsea have also signed contracts with trading platform WhaleFin, while Manchester City has OKX as a partner for training uniforms.
Bitcoin was previously accepted as a club sponsor and payment at the Watford stadium. David Barral, a Spanish striker, made football history last year when he moved from Real Madrid to DUX International de Madrid, and Bitcoin was used for the transaction.
According to UEFA, the crypto industry has assisted clubs in recouping some funds lost due to the COVID-19 pandemic.
However, detractors claim that there are concerns about the volatility of the cryptocurrency market, specifically that the rapidly falling value of tokens may expose users to debt.
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