Within the first year of the five-year collaboration, Binance, one of the biggest cryptocurrency exchanges in the world, abruptly ended it with Argentine Soccer Association (AFA). Binance terminated the agreement with Argentina’s national soccer team due to an AFA contract violation.
Binance cited the AFA’s failure to fully uphold its contractual commitments as the reason for termination. They released a statement in Spanish on Twitter. The exchange expressed disappointment and emphasized commitment to partnership ideals and corporate values.
Binance and the AFA agreed to the inaugural agreement, which was supposed to extend for five years, in January 2022. The transaction was not without controversy, though. The AFA unexpectedly terminated its prior agreement with fan token website Socios to enter into a collaboration with Binance. Socios subsequently took legal action against the association. Despite the legal conflict, Socios continued to be the exclusive supplier of $ARG, the official fan token of the AFA, until 2026.
The current bear market and regulatory crackdown have had an impact on several firms, including Binance, in the cryptocurrency sector. To deal with dwindling profitability, the exchange was obliged to make considerable changes to its business practices. The Wall Street Journal reported that due to the financial crisis, Binance has stopped providing several benefits to its employees. Additionally, in response to the growing legal and regulatory issues it faces globally, the corporation has slashed over 1,000 workers. Additionally, according to the sources, the exchange’s 8,000 employees may lose up to one-third of their jobs in the future.
Binance’s Termination of Cooperation with AFA Amid Regulatory Scrutiny
Amid a challenging time for the exchange, which is dealing with regulatory scrutiny in several locations, Binance has ended its cooperation with the AFA. The business is actively addressing regulatory worries and making sure that it is in line with changing legal requirements.
Exchanges like Binance are under increasing pressure to demonstrate transparency and regulatory compliance as the cryptocurrency sector continues to develop. Because the sector is still in its infancy, legislative changes may have a big impact on how cryptocurrency exchanges operate and collaborate.
The termination of the public relationship with the Argentine Soccer Association serves as a reminder for cryptocurrency businesses. They must manage legislative and market difficulties to preserve profitable operations. It is unclear how Binance and other cryptocurrency exchanges will adjust to the shifting regulatory landscape while still offering its consumers and partners a global service.