Binance's French Arm Reports A Loss of €4 Million In 2022
- Binance France reported a loss of €4 million in the financial statements for 2022.
- The crypto exchange’s French arm currently holds €1bn in crypto assets on behalf of its clients.
- The exchange started recording expenses eight months before revenue, which led to the multi-million euro loss.
- Binance France expects to be profitable by the end of this year.
Binance France has reported a loss of €4 million for the year 2022. The French arm of the world’s largest crypto exchange recently, which was established in November 2021, released the audited financial reports for last year. The crypto exchange’s financial statements were audited by Paris-based accounting and audit firm RSM France.
Binance France Holds €1 Billion On Behalf Of Clients
According to the audited financial reports released by Binance France earlier today, the exchange held €1 billion worth of crypto assets on behalf of its users residing in the country. Apart from that, the exchange also holds 7 million USDT in its own account. The majority of the French crypto exchange’s income came from trading fees charged from users on the platform.
The crypto exchange stated in its report that the reason for the €4 million loss was a mismatch in the dates that they started recording expenses and revenues. The accounts reportedly covered 14 months of expenses but only six months of revenue. The delay in receiving revenue was attributed to the lack of regulatory approval from France’s top market regulator, the Autorité des Marchés Financiers’ (AMF).
Binance France started operating as a crypto exchange only after registering as a virtual asset service provider (VASP) with the AMF in May last year, followed by another two months of formalities to onboard the French users. However, the exchange had started incurring expenses as early as November 2021, which led to 14 months of expenses being recorded in the financial statements.
If not for the mismatch, Binance stated that its French unit would be profitable in 2022. The exchange clarified that the international platform was profitable and that the French unit would also turn profitable in 2023.
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