Binance, the prominent cryptocurrency exchange, has abruptly terminated its partnership with the Argentine Football Association (AFA) in Argentina, citing non-compliance as the reason for the dissolution.
In January 2022, Binance entered into a five-year contract with AFA, becoming the main sponsor of Argentina’s national soccer team and the naming sponsor of the national soccer league.
However, Binance announced on Monday that AFA failed to fulfill its contractual obligations, leading to the decision to end the partnership.
According to a spokesperson from Binance, despite providing ample time and opportunities for AFA to comply, the association did not meet the expected standards, contradicting Binance’s business values and partnership principles.
Despite the termination of the AFA partnership, Binance remains committed to engaging with local partners, including leading universities, to expand educational efforts and strategic business alliances.
The sudden call-off of the partnership comes at a time when the crypto market is experiencing a bearish trend and increased regulatory scrutiny. The decision also surprises many, considering the significant investment and attention surrounding the deal.
This development adds another layer of complexity to Binance, which is already facing heightened regulatory challenges in various jurisdictions, including the United States, the United Kingdom, and Nigeria.
The termination of the AFA partnership is not the first controversy surrounding the association’s deals. AFA reportedly canceled its deal with fan token platform Socios in January 2022, leading to legal action between Socios and AFA. Socios accused AFA of defaulted payments and breaching the use of images of the national team and professional league.
Binance claims to have given AFA sufficient time and opportunities to address any concerns regarding contractual obligations before deciding to sever ties with the association.