The company has cited regulatory problems it’s facing in some European markets that may hinder its trading and others services as the reason for pulling out of the deal.
Citing legal issues it’s facing in some European countries, Singapore-headquartered CryptoCom has backed out of a $495-million sponsorship deal with Union of European Football Association (UEFA) Champions League.
Regulatory Issues Behind Scrapping of Deal
The cryptocurrency company that offers trading, DeFi, and wallet services, among others, was set to replace Russian oil major Gazprom as the sponsor for the next five seasons, up to 2027. UEFA ditched the deal with Gazprom in March after Russia’s invasion of Ukraine, media reports said.
As per media coverage, CryptoCom is expecting legal and regulatory problems in trading and operations in the UK, France, and Italy. The decision to back out at the last minute appears to be forced by the bear market, which has seen $2-trillion of market value lost in last six months.
According to some analysts, crypto firms have spent $2 billion in sports sponsorship deals so far. Can they persevere with these big investments given the market downturn is a big question.
CryptoCom’s Global Expansion Drive
But for CryptoCom, the market downturn doesn’t seem to have ebbed its appetite for more investments in its engagement with sports. In August, it announced a nine-figure investment plan to remodel the CryptoCom Arena.
Last month, it received approval from the Financial Conduct Authority (FCA) in the United Kingdom to operate as a digital asset business. Similarly, registration and license were granted by South Korean authorities to CryptoCom to operate in the country as Virtual Asset Service Provide.
Besides, it received licenses to operate in Italy, Cyprus, Singapore (in-principle), and Dubai (provisional) in the last two months.
In November 2021, CryptoCcom acquired the naming rights of 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 deal with 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 Hollywood actor Matt Damon for a TV commercial.