Cryptocurrency

Binance France records €4 million loss in 2022, optimistic for profit in 2023

Binance France first audited financial records A study covering the 14 months from the company’s founding in November 2021 to December 2022 found that the exchange recorded a loss of €4 million.

Over the period, Binance France incurred a total of €14 million in costs to cover employee salaries, marketing, administrative costs, taxes and professional fees. However, the revenue generated during the same period was only €10 million.

The exchange explained that the loss was due to income in six months out of 14 months of spending. The exchange began operations in November 2021 but did not serve customers until mid-2022 when it received regulatory approval from the Financial Markets Authority (AMF).

Meanwhile, the exchange said it expects to be profitable in 2023, when full-year revenues match operating costs.

RSM Paris, a leading audit service provider, has audited Binance France.

Binance holds €1 billion of cryptocurrency for its users

Binance France has revealed that it has about €1 billion worth of crypto assets for its users. The platform did not disclose the breakdown of these cryptocurrencies in its audit report.

The exchange said it has $7 million USDT in its account.

A translated version of the audit shows a cautionary note in which RSM said it does not comment on the “honesty and consistency” of information provided in its annual results, as it is the company’s management’s responsibility to “establish an annual result that presents a faithful image in accordance with French accounting rules and principles.”

Binance struggles in Europe

Binance remains bullish on its outlook in France, but the outlook looks grim in other European countries as it struggles to gain regulatory approval to continue operations in multiple markets, including the Netherlands, Cyprus and the UK.

Meanwhile, the exchange said it was shifting its focus to ensuring readiness for the upcoming Crypto Asset Market (MiCA) rules, which will come into force in 2024 and establish the regulatory and licensing framework for the industry.

An article first appeared on CryptoSlate stating that Binance France will record a loss of €4M in 2022 and optimistic about its 2023 profit.

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