Binance France Releases 2022 Financial Report: Insights and FAQ

In a significant move towards transparency, Binance France has released its inaugural audited financial statements, providing the media and the Binance community with an opportunity to delve into the financial results of one of its major regional hubs. This article aims to offer context and address some of the most frequently asked questions concerning these financial statements.

The audited financial statements will be made public annually in accordance with Binance France’s local regulatory and legal requirements. These statements cover a 14-month period, beginning from November 8, 2021, the date of the company’s establishment, to the end of the financial year on December 31, 2022.

Key Insights from the Audited Financial Statements:

  1. Crypto Assets: Binance France holds approximately €1 billion in crypto assets on behalf of its French resident users.
  2. USDT Holdings: The exchange holds 7 million USDT in its own account.
  3. 2022 Loss: Binance France recorded a loss of €4 million in 2022. This is attributed to the fact that the accounts encompass 14 months of expenses but only six months of revenue. The exchange began receiving revenue only after obtaining regulatory approval from the AMF (Autorité des Marchés Financiers) in July 2022. However, operating costs incurred from November 2021 are included in these statements.
  4. Revenue Source: The primary source of income for Binance France is trading fees.
  5. Profit Projection: The exchange foresees being profitable in its 2023 financial accounts, with a complete 12-month cycle of income and expenses.

These financial statements were audited by RSM Paris, a prominent audit, consulting, and tax firm, known for its strong reputation and global presence.

FAQs about Binance France’s Financial Statements:

  1. Loss Recording: The recorded loss is due to a mismatch between a full year of expenses and only half a year of revenue. The exchange started generating revenue from July 2022, following regulatory approval, but had operational costs since November 2021.
  2. Financial Year Period: The financial year in question stretches from November 2021, when Binance France was founded, to December 2022. The following financial reporting for 2023 will cover January to December.
  3. Operating Expenses: The €14 million operating expenses primarily included staff costs, marketing expenses, professional fees, administrative expenses, and taxes. Further details can be found in Note 9 of the audited financial statements.
  4. Choice of Auditor: Binance France selected RSM as its independent auditors due to the firm’s reputable status, extensive global presence, and a team of 57,000 professionals operating in 120 countries.
  5. Income Recognition: Following the receipt of registered status, Binance France became compliant with French regulations, enabling it to serve French residents and recognize income from mid-2022.
  6. Auditing Requirement: Audit obligations are driven by local laws and regulations. Binance France’s decision to undergo auditing stems from the demand for added transparency around assets in custody, given users can confirm their assets are held 1:1 through the innovative Proof of Reserves system.

In conclusion, Binance France’s publication of its audited financial statements marks a significant step towards transparency and accountability. The insights gleaned from these statements provide valuable information about the operations and financial performance of this major regional hub, reassuring users and promoting trust within the Binance community.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you