New Manchester City Crypto Sponsor Offers Banned Product To UK Consumers
Manchester City’s new “official cryptocurrency exchange partner” appears to be offering a product to UK consumers that is banned by the UK’s Financial Conduct Authority due to “harm caused by sudden and unexpected losses”. Athleticism can reveal.
The product was mentioned in publicity surrounding the Manchester City deal.
On March 2, City announced the deal with OKX, a “fast, secure and innovative cryptocurrency exchange” based in Seychelles. Cryptocurrencies like Bitcoin and Ethereum have exploded in popularity over the past year, after rising in value, making them attractive as high-risk assets, although they have fallen in value in recent months. Football clubs are now trying to join the gold rush.
OKX sells cryptocurrencies, which is perfectly legal in the UK. But in OKX’s announcement of the deal, under a photo of City stars Raheem Sterling, Kevin De Bruyne and Jack Grealish, the company boasts that it has “the most active crypto derivatives markets on the planet”.
Since January 2021, the sale of crypto derivatives to UK retail consumers has been banned by the Financial Conduct Authority who, after extensive consultation, concluded that “retail consumers could be harmed by sudden and they invest in these products”. expose concerns about crime and fraud in the secondary market.
Despite this, a look at the site and its advertisement makes it clear that crypto derivatives trading is core to the company’s business and appeared to be available when logging in from a UK computer, and the derivatives were mentioned in marketing emails without warning.
OKX removed mention of crypto derivatives from Manchester City announcement after Athleticism ask questions.
“This text appeared in an ‘About OKX’ section on a landing page related to the partnership located on okx.com,” a spokesperson said. “In addition, it described OKX’s global operations. We have removed text that mentions “derivatives” of said text to avoid further confusion. »
The company says the partnership with City is aimed at a global audience, not necessarily just people in the UK, like Manchester City fans who will see the company’s logo beaming around the Etihad Stadium.
(Photo: Mike Egerton/PA Images via Getty Images)