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Crypto Com drops sponsorship deal with UEFA Champions League

The company cited regulatory issues it is facing in some European markets that may hinder its trading and other services as a reason to withdraw from the deal.

Citing legal issues it faces in some European countries, Singapore-based CryptoCom has pulled back from a $495 million sponsorship deal with the UEFA Champions League.

Regulatory issues behind the deal’s cancellation

The cryptocurrency company that provides trading, DeFi and wallet services, among other things, is set to replace major Russian oil company Gazprom as sponsor for the next five seasons, until 2027. Media reports said UEFA abandoned the agreement with Gazprom in March. After the Russian invasion of Ukraine.

According to media coverage, CryptoCom anticipates legal and regulatory issues in the commerce and operations of the UK, France and Italy. The decision to pull back at the last minute appears to have been forced by the bear market, which has seen a $2 trillion loss in market capitalization in the past six months.

According to some analysts, crypto companies have spent $2 billion in sports sponsorship deals so far. Can they persevere with such large investments given the market downturn is a big question.

CryptoCom’s Global Expansion

But for CryptoCom, the market downturn does not appear to have dampened its appetite for more investments in its involvement with the sport. In August, it announced a nine-figure investment plan to redesign the CryptoCom Arena.

Last month, it received approval from the UK’s Financial Conduct Authority (FCA) to operate as a digital asset business. Similarly, the South Korean authorities granted the registration and license to CryptoCom to operate in the country as a virtual asset service.

Besides, I have obtained licenses to operate in Italy, Cyprus, Singapore (in principle) and Dubai (temporary) in the past two months.

In November 2021, CryptoCcom acquired the naming rights to Staples Center in Los Angeles for 20 years for $700 million. Now, it is called CryptoCom Arena.

In March, the company signed a multi-year sponsorship agreement with the Aston Martin Cognizant Formula One team, and in June – a five-year sponsorship deal with Formula 1.

The platform also reportedly paid Hollywood actor Matt Damon $100 million for a TV ad.

Source

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