Binance France first audited financial records covering 14 months between when the company was created in November 2021 to December 2022 showed that the exchange recorded a loss of €4 million.

Throughout the period, Binance France incurred total expenses of €14 million to cater for its staff payroll, marketing, administrative costs, taxes, and professional fees. However, it generated only €10 million in revenue during the same period.

The exchange explained that the loss was because it generated revenue for six out of the 14 months of expenses. Although it started operating in November 2021, the exchange did not service customers until it got regulatory approval from the Autorité des marchés financiers (AMF) in mid-2022.

Meanwhile, the exchange said it expects to profit in 2023 when it has a full year of revenue to match operating expenses.

RSM Paris, a leading auditing service provider, audited Binance France.

Binance holds €1B in crypto for users

Binance France revealed that it holds about €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 stated that it holds $7 million in USDT in its account.

A translated copy of the audit showed a caveat where RSM stated that it has no comments on the “sincerity and consistency” of the information provided in the annual accounts as it was the responsibility of the firm’s management to “establish annual accounts presenting a faithful image in accordance with French accounting rules and principles.”

Binance struggles in Europe

While Binance remains bullish on its prospects in France, its outlook in other European countries appears grim as it has struggled to get regulatory approvals to continue operations in several markets, including the Netherlands, Cyprus, United Kingdom, and others.

Meanwhile, the exchange said it is shifting its focus to ensuring it is ready for the upcoming Markets in Crypto Assets (MiCA) rules, which come into force in 2024 and will establish a framework of regulation and licensing for the industry.

The post Binance France records €4 million loss in 2022, optimistic for profit in 2023 appeared first on CryptoSlate.

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Filed under: Bitcoin - @ July 21, 2023 11:47 pm