Key Points:
- Binance France held approximately €1bn in crypto assets on behalf of its French resident users and recorded a €4M loss in 2022 due to regulatory hurdles.
- The audited financial statements were audited by RSM Paris, which was chosen due to its strong reputation, global presence, and team of 57,000 people.
- Binance France’s income primarily consists of trading fees and the company projects that it will be profitable in its 2023 accounts with a combined 12 months of income and expenses.
Binance France’s first audited financial statements reveal €1bn in crypto assets on behalf of French residents and a €4M loss due to regulatory hurdles. RSM Paris audited the statements.
Binance France recently published its first audited financial statements covering a 14-month period from November 8, 2021, to December 31, 2022. The statements revealed that Binance France held approximately €1bn in crypto assets on behalf of its French resident users and 7M USDT on its own account.
The company also recorded a €4M loss in 2022 due to the accounts covering 14 months of expenses but only six months of revenue. Binance France only received revenue after it was able to serve users on receipt of regulatory approval from the AMF, approximately halfway through 2022. Meanwhile, the firm incurred operating costs starting in November 2021. The audited financial statements were audited by RSM Paris.
Binance France’s income primarily consists of trading fees, and the company projects that it will be in profit in its 2023 accounts with a combined 12 months of income and expenses. The audited financial statements also revealed that the company’s operating expenses of €14m consisted of staff costs and related payroll charges, marketing expenses, professional fees, administrative expenses, and taxes.
Binance France’s financial year started in November 2021, when the company was established and ended in December 2022. Financial reporting for 2023 will cover January to December. The company’s VASP registration was granted in May 2022, and French resident users signed new terms and conditions in July 2022, becoming clients of Binance France. The entity started to receive the revenues generated from these clients in its accounts. In contrast, expenses (including the costs associated with its registration) started from the creation of Binance France in November 2021.
Binance chose RSM as its independent auditors due to the firm’s strong reputation, global presence, and a team of 57,000 people. Local laws and regulations generally drive audit requirements, and any Binance entity required to be audited complies with its obligations. Binance France is not the only Binance entity that has been audited.
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