Binance France, a popular cryptocurrency exchange, recently released its audited financial records, revealing a loss of €4 million for a period of 14 months from November 2021 to December 2022. The total expenses incurred by the exchange during this timeframe amounted to €14 million, covering various aspects such as staff payroll, marketing, administrative costs, taxes, and professional fees. In contrast, the revenue generated by the exchange reached only €10 million throughout the same period.
It is important to note that the loss primarily occurred because Binance France was able to generate revenue for only six out of the 14 months of expenses. The exchange started its operations in November 2021 but could not serve customers until it obtained regulatory approval from the Autorité des marchés financiers (AMF) in mid-2022. Binance France remains optimistic, expecting a profitable year in 2023 as it will have a full year of revenue to offset its operating expenses.
The audit for Binance France was conducted by RSM Paris, a respected auditing service provider. 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 revealed that it maintains $7 million in USDT within its account.
It is worth mentioning that 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, the responsibility lies with the management of the firm to establish accurate and compliant annual accounts in accordance with French accounting rules and principles.
While Binance France remains optimistic about its prospects in the country, it has encountered challenges in other European markets. The exchange faced difficulties in obtaining regulatory approvals to continue its operations in countries such as the Netherlands, Cyprus, and the United Kingdom. These hurdles have posed a significant obstacle for Binance France’s expansion plans in Europe.
To overcome 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. By proactively preparing for the implementation of MiCA regulations, Binance France aims to ensure compliance and create a favorable operating environment for its business in Europe.
Binance France’s audited financial records reflect 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, such as the Netherlands, Cyprus, and the United Kingdom, Binance France remains optimistic about its future.
To navigate these challenges, Binance France is actively preparing for the implementation of MiCA regulations. By embracing these upcoming regulations, the exchange aims to establish a clear and comprehensive regulatory framework for the cryptocurrency industry. With a positive outlook and a proactive approach, Binance France aims to overcome regulatory obstacles and continue to grow and thrive in the European market.
