Binance France first audited financial records covering 14 months between the company’s inception in November 2021 and December 2022 showed that the exchange recorded a loss of €4 million.
Throughout the period, Binance France incurred total expenses of €14 million to cover its staff payroll, marketing, administrative costs, taxes, and professional fees. However, it only generated €10 million in revenue during the same period.
The exchange explained that the loss was due to the fact that it had generated income for six of the 14 months of expenses. Although it began operating in November 2021, the exchange did not serve its clients until it obtained regulatory approval from the Autorité des marchés financiers (AMF) in mid-2022.
Meanwhile, the exchange said it expects to turn a profit in 2023 when it has a full year of revenue to match operating expenses.
RSM Paris, one of the leading audit service providers, audited Binance France.
Binance holds 1 billion euros worth of crypto for users
Binance France revealed that it holds around €1 billion worth of crypto assets for its users. The platform did not provide a breakdown of these cryptocurrencies in its audit report.
The exchange said it holds $7 million in USDT in his account.
A translated copy of the audit included a disclaimer in which RSM said it did not comment on the “sincerity and consistency” of the information provided in the annual accounts, as it was up to the firm’s management “to prepare annual accounts presenting a true and fair view in accordance with French accounting rules and principles”.
Binance in trouble in Europe
While Binance remains optimistic about its prospects in France, its outlook in other European countries looks bleak as it struggles to secure regulatory approvals to continue operations in several markets, including the The Netherlands, Cyprus, United KingdomAnd others.
Meanwhile, the exchange said it is now focused on preparing for the upcoming Crypto Asset Markets Rules (MiCA), which will come into force in 2024 and establish a regulatory and licensing framework for the industry.
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