The Board of Control for Cricket in India (BCCI) has made it clear that cryptocurrency and real money gaming companies will not be able to bid for the Indian national cricket team’s main sponsorship rights. The announcement on Tuesday was part of the new Invitation for Expression of Interest (IEOI), which ends on September 16. To take part in the bidding process, interested firms must pay a registration fee of Rs. 5 lakh (plus GST) that is not refundable.
Why the decision?
Companies that deal with “crypto trading, crypto exchange, crypto token, online money gaming, betting, gambling services, or similar services” are not allowed to apply under the new rules. The limitation is stringent, even when it comes to proxy branding and indirect collaborations with organizations that deal in cryptocurrency. This makes the BCCI’s new position more harsh than any other rules that have been in place on these kinds of sponsorships.
This restriction is a direct result of the growing regulatory pressure on crypto advertising in India. Regulators have always been worried about protecting investors, especially those in the retail sector. The Securities and Exchange Board of India (SEBI) had already suggested that celebrities should not be able to endorse cryptocurrencies because of misleading ads that typically feature Bollywood stars.
The BCCI’s choice to keep crypto and real money gaming companies out of one of India’s most visible marketing opportunities sends a strong message. It shows how hard it is for crypto companies to utilize sports as a way to advertise in a sector where rules are getting stricter. The move also shows that big sports organizations are starting to work with financial regulators to protect themselves from the risks of high-risk assets.
This restriction means that crypto exchanges and blockchain companies in India will have to find new ways to get the attention of Indian people because cricket is now off-limits. Some people in the industry think that not being able to get high-profile sponsorships could also make it harder for crypto trading to become more popular. Since cricket is India’s most popular sport, sponsorship visibility may have made the sport more popular with the population. This move is also likely to start a bigger conversation about whether other sporting organizations will follow the BCCI’s example and stay away from the crypto industry.