Binance France’s 2022 Financials Reveal €4 Million Loss and €1 Billion in Crypto Assets for Users
Binance France, one of the major regional hubs of the popular cryptocurrency exchange Binance, has just unveiled its first-ever audited financial statements, offering a closer look into the company’s financial performance over a span of 14 months, starting from November 2021 and concluding in December 2022.
The audited records reveal some noteworthy details about Binance France’s operations during this period. Notably, the company holds approximately €1 billion in cryptocurrency assets on behalf of its users, primarily comprising French residents who engage with the Binance platform.
However, the financial statements also bring to light that Binance France reported a €4.185 million loss in 2022. The reason behind this loss is quite intriguing: while the company’s expenses were accounted for during the 14-month period, its revenue only covered six months. The delay in generating revenue was primarily due to regulatory approval from the AMF, which granted Binance France the green light to operate as an exchange in July 2022. As a result, the company was only able to start earning revenue midway through that year.
Despite the reported loss, Binance France is optimistic about its financial future. The company projects that it will achieve profitability in its 2023 accounts, as it will encompass a complete year of income and expenses.
The primary source of income for Binance France, like most cryptocurrency exchanges, is derived from trading fees. Facilitating transactions on its platform and charging fees to users for these services contributed to the majority of its income during the audited period.
RSM Paris, a reputable audit, consulting, and tax firm, carried out the independent audit of Binance France’s financial statements. With a global presence and a team of 57,000 professionals worldwide, RSM Paris brings credibility to the auditing process.
In light of the financial disclosure, Binance France has also provided a helpful Q&A session to address anticipated queries from the media and their community of users, referred to as “Binancians.” The questions touch on topics such as the reason for the reported loss, the timing of revenue recognition, and the breakdown of operating expenses.
Among the queries, Binance France clarifies that despite having a presence and French users for several years, the company’s income recognition began in mid-2022 only after securing regulatory approval. This change allowed French residents to directly interact with Binance France, a locally regulated and audited entity.
Regarding the decision to be audited in France, the company explains that audit requirements are often driven by local laws and regulations. Binance France is not the sole entity within the Binance ecosystem to undergo audits. The company also emphasizes that while private companies in many jurisdictions may not be mandated to produce financial statements, they believe in added transparency around assets in custody, which aligns with market demands.
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