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- France has put a ban on using crypto by Formula 1 teams.
- The nation wants to regulate digital assets as they appear risky.
- Many nations like Russia, Bolivia, Ghana etc. have already banned crypto.
F1 Cars Will Race Without Crypto Ads In France
Cryptocurrencies have always attracted the regulators around the globe. Not in a positive way though, but to take control over them as they see the digital assets as a risky investment. Recently, France’s financial regulator made an announcement that F1 racing teams can no longer use ads associated with virtual assets as their sponsors.
As per a racing news website, 8 out of 10 teams have a crypto organization as their sponsor. Among them are Red Bull Racing, which are in collaboration with ByBit and Tezos. The latter is also a partner of the legendary EPL club Manchester United. Alfa Romeo currently works with Floki and Vauld. Another F1 team is Aston Martin who are partners with crypto(dot)com.
Report says that the teams are making discussions over this matter and will stop selling the sponsorships of these organizations. The decision was taken by the financial regulator of France, AMF. The regulator says that those assets are not registered, hence, the restrictions.
Crypto Bans In Sports Industry And Nations
Similar incident happened recently in the National Football League (NFL). The teams were notified that they cannot sell NFTs, sponsor cryptos, Initial Coin Offerings and prohibit anything related with this field. The ban comes due to the risk factor of the asset. Sports teams and players are heavily attracted towards NFTs and cryptos.
Many nations around the globe have also implemented a ban on crypto assets. Recently, Vladimir Putin declared that digital assets are a threat, and restricted their use in Russia. Qatar put a ban to ensure the banking and financial system’s safety. Securities and Exchange Commission in Ghana also prohibited crypto assets in the nation, but is open for regulating them in future.
A report issued by the UN, especially focused on the perils of crypto assets, suggests that nations having lower income should not allow virtual assets to operate in the nation due to the risk factor associated with them.
Cryptocurrencies are widely considered by many nations as extremely volatile assets. But still there are some that trust them and make investments anyway. El Salvadopr, the South American nation is the best example of this, as the country has declared Bitcoin as its legal tender.