UK MPs Discuss KiX, Vow to Prevent Another Football Index Situation

The UK parliament has discussed KiX, a controversial new soccer trading platform. While bearing some similarities to the failed Football Index platform, KiX says that its predecessor was merely a “proof of concept.”

For context, the Football Index was a platform similar to a stock market. Instead of stock, however, players dealt with wagers on the performance of soccer players. After its license was suspended in 2021, the platform collapsed, leaving over £100 million trapped in the system. As a result, many clients were left with devastating losses.

The fact that Adam Cole, the founder of the Football Index, is now involved in KiX, was reason enough to cause concerns among parliament members.

Shadow minister Liz Twist commented on the matter, saying that she does not want her constituents “to be caught up in a scheme that replicates the problems of Football Index.” Because of that, she noted that the parliament needs to learn its lessons.

Commenting on the Football Index, Twist said:

I am sure most Members in Westminster Hall today and across the House have received emails from constituents who lost life savings, struggled with their mental health and dealt with putting their lives back together after that failure.

Liz Twist

She added that some lost their homes, others their wedding funds, causing huge amounts of distress. Twist also pointed out that these people were misled, believing themselves to be investors rather than bettors. Now, many of these people fear that they might never be compensated.

The UK Should Be Wary of KiX, Twist Says

Twist commented on KiX and other novel products, saying that they ought to be carefully examined, lest the Football Index disaster repeats itself. She explained that KiX is a soccer “cryptocurrency trading project that makes use of non-fungible tokens and cryptocurrency.” While the UKGC is currently reviewing the new platform’s offerings, KiX’s NFT and crypto elements may lie outside of the regulator’s scope.

Twist added that if the Football Index was blurring the lines between gaming and investment, KiX is crossing over them altogether. Because of that, Twist believes that the product should be reliably regulated before being allowed in the market.

I fear that the product that I am talking about today—KiX—is dangerous and has the potential to bring misery to more people. I therefore urge the Minister to do everything he can to ensure that this platform does not launch without the utmost regulations being in place.

Liz Twist

Twist added that she hopes the gambling minister Stuart Andrew will take the Football Index’s victims’ calls into mind when deciding what to do with KiX.

Andrew later took part in the debate, saying that he sympathized with the affected. He said that the discussion has been very valuable and emphasized that both he and the government recognize the serious consequences that the collapse of the Football Index has had on consumers. Minister Andrew vowed to never allow something like this to happen again.

Andrew assured other parliament members that the commission will continue to take a very active role in the monitoring of KiX and will take appropriate risk-based action if it identifies that any of its activities fall into the FCA’s remit.