Binance France recently released its audited financial records, covering a period of 14 months from November 2021 to December 2022. The records revealed that the exchange experienced a loss of €4 million during this timeframe. The expenses incurred by Binance France amounted to a total of €14 million, which encompassed staff payroll, marketing, administrative costs, taxes, and professional fees. However, the revenue generated by the exchange only reached €10 million throughout the same period.
Binance France clarified that the loss was primarily due to the fact that it only generated revenue for six out of the 14 months of expenses. Although the exchange commenced operations in November 2021, it did not begin serving customers until it obtained regulatory approval from the Autorité des marchés financiers (AMF) in mid-2022. Binance France anticipates a profitable year in 2023, as it will have a full year of revenue to offset its operating expenses.
RSM Paris, a renowned auditing service provider, conducted the audit for Binance France. The exchange disclosed that it currently holds approximately €1 billion worth of cryptocurrency assets on behalf of its users. However, the audit report does not provide a breakdown of the specific cryptocurrencies held by the platform. Additionally, Binance France has revealed that it maintains $7 million in USDT within its account.
The audit report includes a caveat from RSM, stating that it does not provide comments on the “sincerity and consistency” of the information presented in the annual accounts. According to RSM, it is the responsibility of the firm’s management to establish accurate and compliant annual accounts in accordance with French accounting rules and principles.
Challenges and Future Outlook for Binance France
While Binance France remains optimistic about its prospects in the country, it faces challenges in other European markets. The exchange has encountered difficulties in obtaining regulatory approvals to continue its operations in countries such as the Netherlands, Cyprus, and the United Kingdom.
To navigate these challenges, Binance France is shifting its focus towards preparing for the upcoming Markets in Crypto Assets (MiCA) rules. These regulations, set to be enforced in 2024, will establish a comprehensive framework for the regulation and licensing of the cryptocurrency industry.
Binance France’s audited financial records demonstrate a loss of €4 million during a 14-month period. The exchange attributes this loss to generating revenue for only six out of the 14 months of expenses. Despite facing regulatory hurdles in various European markets, Binance France is optimistic about its future and is actively preparing for the implementation of MiCA regulations.
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