The corporation cites regulatory hurdles in various European markets as the reason for bailing out of the arrangement
CryptoCom, which is based in Singapore, has backed out of a $495-million sponsorship deal with the Union of European Football Association (UEFA) Champions League because of legal problems in some European countries.
Regulatory issues halted deal
The company pulled out of the deal because it is having trouble with regulations in some European markets, which could hurt its trading and other services.
CryptoCom, which is based in Singapore, has backed out of a $495-million sponsorship deal with the Union of European Football Association (UEFA) Champions League because of legal problems in some European countries.
Deal Fell Through Because of Regulatory Problems the cryptocurrency company that offers trading, DeFi, and wallet services, among other things, was set to replace Russian oil giant Gazprom as the sponsor for the next five seasons, until 2027.
Media reports said that UEFA broke the deal with Gazprom in March after Russia invaded Ukraine.From what the news says, CryptoCom can expect legal and regulatory problems in the UK, France, and Italy when it comes to trading and running its business.
The last-minute decision to back out seems to have been forced by the bear market, which has lost $2 trillion in value in the last six months.
Analysts say that crypto companies have spent $2 billion so far on sports sponsorship deals.
A big question is whether or not they will keep making these big investments even though the market is down.
Global Expansion of CryptoCom
But CryptoCom doesn’t seem to have changed its plans to invest more in sports because of the market downturn.
In August, it said it would spend $9 million to update the CryptoCom Arena.
The Financial Conduct Authority (FCA) in the United Kingdom gave it permission to run as a digital asset business last month.
In a similar way, South Korean authorities registered and licensed CryptoCom to work as a Virtual Asset Service Provider in the country.
In the last two months, it also got licenses to work in Italy, Cyprus, Singapore (in principle), and Dubai (provisionally).
In November 2021, CryptoCcom paid $700 million for the right to name the Staples Center in Los Angeles for 20 years.
It now goes by the name CryptoCom Arena. In March, the company signed a multi-year sponsorship deal with the Aston Martin Cognizant Formula One Team.
In June, it signed a five-year sponsorship deal with Formula 1. The platform is also said to have paid Hollywood actor Matt Damon $100 million for a TV commercial.
