Binance France, a major regional hub of the crypto exchange Binance, recently took a significant step toward transparency and accountability by publishing its first audited financial statements for the year 2022.
This development is a positive step, allowing the Binance community and the media to gain insight into the financial performance of this major exchange.
Summary
Crypto exchange Binance publishes annual financial statements for the year 2022
The audited financial statements cover a single 14-month period from the company’s inception on 8 November 2021, to the end of the fiscal year on 31 December 2022.Â
During this time, Binance France has diligently held about 1 billion euros in crypto-assets on behalf of its users residing in France. In addition, the exchange itself has 7 million USDT in its account.
Despite the substantial holdings, the financial statements also reveal that Binance France posted a loss of 4 million euros in 2022.
However, this loss can be attributed to the fact that the accounts cover 14 months of expenses but only 6 months of revenue. Binance France started to collect revenue only after receiving approval from the Autorité des Marchés Financiers (AMF) to operate in France, which happened around mid-2022.
On the other hand, operating expenses were incurred as early as November 2021. This explains the financial shortfall, as a full year of revenue would likely have resulted in profitability.
Nevertheless, Binance France remains optimistic about its future prospects and expects to achieve profitability in the 2023 statements, which will cover a full year of revenue and expenses.
Binance France’s main revenue stream comes from trading fees, in line with the business model of cryptocurrency exchanges. The financial results are therefore in line with industry trends.
These financial statements were audited by RSM Paris, a renowned audit, consulting, and tax advisory firm with a global presence in 120 countries and a staff of 57,000 professionals. The selection of RSM as the independent auditor underscores Binance France’s commitment to ensuring the accuracy and integrity of its financial statements.
The financial statements of Binance France in detail
The expenses detailed in the budget include a number of key costs, including personnel expenses and associated social contributions, marketing expenses, professional fees, administrative costs, and various taxes.
For a more complete breakdown of these expenses, interested parties can refer to Note 9 of the audited financial statements.
Binance France’s journey to its current status has been marked by significant milestones. The exchange received PSAN (Prestataire de Services sur Actifs Numériques) registration in May 2022, allowing it to operate legally and offer its services to French residents.
As of July 2022, users residing in France became customers of Binance France after signing the new Terms and Conditions, thus allowing the entity to start receiving the revenues generated by these customers.
It is important to note that operational expenses, including costs related to registration, have been incurred since the inception of Binance France in November 2021.
Looking forward, Binance France aims to further consolidate its position in the market as a regulated and controlled entity, targeting French users directly.
The exchange recognizes the importance of adhering to local laws and regulations, and its compliance efforts are reflected in its decision to undergo an annual audit.
In addition, Binance France has been proactive in responding to market demands for transparency.
Although private companies are not universally required to produce financial statements, Binance France saw an opportunity to meet the market’s demand for greater visibility into assets held.
As part of its innovative approach, it offers “proof of reserves,” allowing all users to verify that their assets are held at a 1:1 ratio.
Conclusions
In conclusion, the publication of Binance France’s audited financial statements for 2022 demonstrates the company’s commitment to transparency and financial responsibility. Despite reporting a loss due to the one accounting period of 14 months, the exchange remains optimistic about its future profitability.
With RSM Paris as its independent auditor, Binance France is poised to maintain its commitment to providing quality services to French residents while complying with local regulations.
As the cryptocurrency industry continues to evolve, Binance France’s commitment to innovation and transparency sets a positive example for the cryptocurrency community at large.
