UK sports committee wants football to tackle fan tokens, NFTs

A report released Wednesday recommended against using NFTs in football as a valid measure of fan engagement due to price instability and fan group concerns

article-image

MDI/Shutterstock, modified by Blockworks

share

The UK’s culture, media and sports (CMS) committee is advising the government to collaborate with NFT marketplaces to address copyright violations.

Comprising a group of MPs, the committee initiated an inquiry in Nov. 2022 to explore the impact of blockchain and NFTs on policy areas within their jurisdiction.

In a report released Wednesday, they pinpointed intellectual property risks as their primary concern during the investigation.

NFTs featuring art can infringe on artists’ intellectual property rights and are found on online platforms with limited ways to resolve and compensate for such issues, they said.

“Artists are at risk of seeing the fruits of their hard work pinched and promoted without permission while fraudulent and misleading adverts add an extra layer of jeopardy for investors involved in what is already an inherently risky business,” Caroline Dinenage, Conservative MP and Chair of the CMS Committee, said in a statement. 

“The government must make sure that everyone in the crypto chain is working to properly protect consumers and the rights of creators,” she added.

The committee noted that an opportunistic user might, for instance, use inaccurate information, like misattributing the creator of an artwork, potentially impacting the creator’s future ability to profit from the artwork.

To tackle this issue, they recommended establishing rules for online marketplaces, including NFT platforms, to safeguard creators, buyers and sellers from fake or illegal content.

The group is also worried that NFTs are being used in professional sports to generate extra income from global fans and, in some cases, as a substitute for fan interaction.

Fan tokens are created to boost fan interaction with sports teams or organizations. When fans buy these tokens, they gain access to various perks, rewards and chances to connect with their favorite teams or clubs in return.

In the context of sports, the report suggested that employing fan tokens in football should not be considered a valid gauge of engagement, due to price instability and concerns raised by fan groups.

“The unique relationship between clubs and fans means that fan speculation on sport-based cryptoassets carries a real risk of financial harm to fans and reputational harm to clubs,” the report said.

The committee also urged the government to tackle deceptive or dishonest NFT advertising. 

They recommended a regulatory framework that mandates the entire advertising process to minimize potential harm to consumers arising from NFT marketing.

Recent UK regulations mandate that crypto companies must ensure their advertising is transparent, equitable and prominently displays risk notifications.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png

Research

Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.

/

article-image

Though the opposing flow trend is likely to slow over time, industry watchers note, bitcoin fund assets could one day eclipse the $90 billion gold ETF space

article-image

Celestia had the first mover advantage. EigenDA has staked ether. What sets Avail apart?

article-image

Bitcoin moved 1% higher Monday morning in New York, Matrixport analysts say $62,000 could happen next month

article-image

It’s hard to believe right now that crypto — even with all of its flexibility and massive capabilities — could ever be like cash on the internet

article-image

Michael Saylor announced Monday morning that MicroStrategy bought 3k more bitcoin after the X account was compromised over the weekend

article-image

Plus, Pudgy Penguins grows its brand and a group of Autoglyphs sell for $14.5 million