The Board of Control for Cricket in India (BCCI) has banned cryptocurrency exchange sponsorship deals with Indian Premier League (IPL) teams.
Until the Indian government passes regulations surrounding the sector, which are expected this winter, the organisation has stated that neither IPL teams or players are to engage in these types of collaborations.
According to the Economic Times, some IPL franchise owners have taken a great disliking to the decision, as they have already been in talks with crypto-associates over future sponsorship deals.
A franchise, which had to terminate its sponsorship discussions with a crypto enterprise for the next T20 season, told the source: “It’s a major opportunity loss. The kind of money they were offering for the main sponsorship was 1.5 times of what the current sponsor is paying. They wanted to build their brand with our association and were ready to pay for that.”
Sparking further debate surrounding the need for a ban is the International Cricket Council’s (ICC) recent agreement with CoinSwitch Kuber and CoinDCX to advertise during the Men’s ICC T20 World Cup.
Furthemore, Star Sports and Disney Star are now also banned from showing crypto and betting advertisements under the BCCI’s ruling.
Just over two weeks ago, Shaktikanta Das, Reserve Bank of India Governor, expressed her view that ‘Cryptocurrencies are a very serious concern from a macro economic and financial stability point of view’.
Das’ comments come at a time when cryptocurrency has surged within the sporting industry, as some experts have claimed that this market may take the place of betting platforms following the 2005 Gambling Act review.
In one of the most significant moves of a digital currency firm, Crypto.com recently landed the naming right to the iconic home of the LA Lakers, in a deal that many believed elevated crypto partnerships into the mainstream.
That being said, a level of hesitancy remains around crypto collaborations, with Premier League champions Manchester City being forced to suspend their partnership 3Key, over the lack of information around the company.