Citing legal issues it is facing in some European countries, Singapore-based CryptoCom has given up on a $ 495 million sponsorship deal with the Union of European Football Association (UEFA) Champions League.
Regulatory issues behind the scrapping of the deal
The cryptocurrency firm offering trading, DeFi and wallet services, among others, was expected to replace Russian oil major Gazprom as a sponsor for the next five seasons, until 2027. UEFA ditched the deal with Gazprom in March after the Russian invasion of Ukraine, the media said.
According to media coverage, CryptoCom expects legal and regulatory issues in trade and operations in the UK, France and Italy. The decision to pull out at the last minute appears to have been forced by the bear market, which has seen a $ 2 trillion loss in market value over the past six months.
According to some analysts, cryptocurrency companies have spent $ 2 billion on sports sponsorship deals so far. They can persevere with these large investments as the downturn in the market is a big demand.
CryptoCom’s global expansion unit
But for CryptoCom, the downturn in the market doesn’t seem to have dampened its appetite for further investment in its engagement with the sport. In August, it announced a nine-figure investment plan to remodel the CryptoCom Arena.
Last month, it received approval from the UK’s Financial Conduct Authority (FCA) to operate as a digital asset business. Likewise, the registration and license has been granted by the South Korean authorities to CryptoCom to operate in the country as a virtual resource service provider.
In the past two months it has also received licenses to operate in Italy, Cyprus, Singapore (in principle) and Dubai (provisionally).
In November 2021, CryptoCcom acquired the naming rights of the Staples Center in Los Angeles for 20 years for $ 700 million. It is now called CryptoCom Arena. In March, the company signed a multi-year sponsorship deal with the Aston Martin Cognizant Formula One Team and, in June, a five-year sponsorship deal with Formula 1. The platform also reportedly paid $ 100 million to the Hollywood actor Matt Damon for a TV commercial.
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