Binance France loses $4 million, expects shift to profitability in 2023
Binance France has released its first audited financial statements, which shed light on the exchange’s financial metrics and operations, providing valuable insights for the industry participants.
According to the audited report, Binance France holds around €1 billion in client crypto assets and retains 7 million USDT on its own account.
However, the financial statements also reveal that Binance France recorded a €4 million loss in 2022. The exchange attributes this apparent setback primarily to accounting considerations, namely the results cover 14 months of expenses but only six months of revenue.
Binance France was permitted to launch operations as a regulated entity only after it secured approval from the French financial regulator, the Autorité des marchés financiers (AMF), in July 2022. Consequently, Binance France began receiving revenues midway through the financial year. Trading fees made up the lion’s share of Binance France’s revenue stream, the report shows.
Looking ahead, Binance France is anticipating a transition to profitability in 2023, with a combined 12 months of income and expenses. The company remains optimistic about its growth prospects and its commitment to compliance with local regulatory and legal requirements.
The decision to release audited financial statements is part of Binance France’s regulatory requirements, which include providing its users with a comprehensive understanding of its financial operations and assets in custody.
The financial statements were audited by RSM Paris, the world’s 6th largest audit, consulting and accounting network, which is present in over 120 countries.
Binance France holds a digital asset service provider registration, which enables its Paris-based business to offer trading and custody services for cryptocurrencies on its platform. It was supposed to boost Binance’s ambitions in Europe after it has been on shaky ground, with regulators in the UK and elsewhere putting the exchange under intense scrutiny.
Binance’s operations in France are reportedly under investigation by the country’s regulators under the jurisdiction of the specialized interregional jurisdiction of Paris (JIRS). French prosecutors have opened a probe into operating its crypto business before it received regulatory approval in 2022, as well as implementing poor money laundering checks.
The investigation initiated by the Parisian authorities against Binance is part of a recurring pattern of alleged regulatory breaches that have cast a shadow over the exchange’s operations on a global scale.
However, Binance dismissed concerns about US regulatory woes affecting other global operations, comparing them with the flapping of a butterfly’s wings.
