Binance France has published its first audited financial statements, providing insight into the financial performance of its major regional hub. According to the crypto exchange, the report covers 14 months from November 2021 to December 2022 and is expected to become an annual publication for the public, in compliance with local regulatory requirements.
Binance France is the French arm of the global crypto exchange, Binance Holdings Ltd. The exchange, which allows French users to buy, sell, and trade cryptocurrencies using the Euro and other fiat currencies, was granted a license to operate in the European country in May 2022.
Details from the financial report revealed that the company holds an approximate figure of €1 billion in crypto assets on behalf of its French resident users, as well as 7 million USDT on its own account. In the announcement, it also posted a loss of €4 million.
Binance France explained via the financial statements that were audited by RSM Paris, an independent auditing firm, that its loss was due to the accounts covering 14 months of expenses but only six months of revenue. It said that these expenses include staff costs, marketing expenses, professional fees, administrative expenses, and taxes.
The period for receiving revenue started when the exchange was granted regulatory approval from the AMF, allowing the company to serve users and receive revenue only from July 2022, while operational costs began in November 2021.
However, it added that its primary source of income is trading fees and that it’s projecting a turnout of profits when it releases its 2023 report, which will follow the standard January to December period.
In the first two quarters of the year, the cryptocurrency industry has advanced in France with the AMF granting CACEIS, a French bank, approval to offer Bitcoin custody services, while Societe Generale, another bank, obtained a license from the AMF, to offer cryptocurrency services.