FCA warns UK clubs over unauthorized crypto sponsorships

The Financial Conduct Authority has written to UK football clubs, including Premier League teams, asking them to review sponsorship agreements with cryptocurrency firms that are not authorised to operate in the UK. The regulator said such deals can expose supporters to financial harm and create legal risks for clubs.

The FCA asked clubs to verify the source of sponsorship funds and assess whether arrangements could create money-laundering risks or result in clubs receiving criminal property under the Proceeds of Crime Act. The regulator did not name specific clubs or agreements in the letter.

The letter said several unauthorised crypto and trading platforms have used club sponsorships to reach “unwitting football fans.” Fiona Mackinnon-Miller, who leads the FCA team on scams, promotions and consumer investments, instructed clubs to ensure they understand where sponsorship money comes from and to consider possible reputational and financial crime risks.

Lucy Castledine, director of consumer investments at the FCA, added: “Millions of football fans trust their club's badge. Clubs should not let unauthorized financial firms exploit that loyalty by putting potentially dodgy products in front of millions of fans.” The regulator said it has engaged directly with clubs where it identified concerns and will take enforcement action where needed.

The FCA asked clubs to carry out due diligence on potential sponsors, check whether firms are authorised to carry out regulated activities in the UK, and consider contractual protections that require compliance with UK law. It said it is working with government departments, the Premier League and the Independent Football Regulator on the issue.

The regulator did not introduce new rules in the letter. Instead it pointed to existing anti-money laundering rules and guidance on criminal property as the legal basis for the warnings. Several international crypto exchanges have secured visible sponsorship deals with UK clubs in recent years, which the FCA says can be a route for unauthorised firms to reach large numbers of supporters.