- Binance’s French Division recently published its audited financial reports for 2022.
- The crypto exchange reported a loss of €4 million in 2022, along with holdings of customer assets worth €1 billion.
- The loss was attributed to a mismatch in recording revenue and expenses last year.
Binance France, the French division of the world’s largest crypto exchange, recently published its audited financial reports for the year 2022. The financial report revealed a loss of €4 million last year. As per Binance, the loss arose from a mismatch in the recording of expenses and revenue in 2022.
According to the report published on Binance’s blog, the audit of the French crypto exchange’s first financial statements was carried out by RSM France, a Paris-based accounting, consulting, and audit firm. The financial statements covered a 14-month period from November 8, 2021, to December 31, 2022.
The audited financial statements showed that Binance France recorded a loss of €4 million last year. As per Binance, the expenses were being counted since November 2021 but revenue was only recorded from July 2022 onwards. This gave the expenses an 8-month headstart on the balance sheet, leading to the multi-million Euro loss.
Since Binance France did not have regulatory approval from the Autorité des Marchés Financiers’ (AMF), it was unable to record the revenue from its operations. After registering with the French regulator as a virtual asset service provider (VASP) in May 2022, Binance France started onboarding customers and started operating as a crypto exchange in July 2022.
The audited financial statements further stated that the French arm of Binance held a whopping €1 billion on behalf of its users in the country. The crypto exchange also held 7 million USDT in its own account. The income was primarily derived from fees charged from users trading on the platform. Binance France stated that it expects to show a profit in the financial statements for 2023, which would reflect a combined 12 months of income and expenses.
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