Binance France today published its first audited financial statements. We believe our community of alumni and the media will be interested in the financial results of one of our main regional centers. We therefore take this opportunity to briefly present the facts to you and answer the most frequently asked questions.
These financial statements will be published annually in accordance with local legal and regulatory requirements of Binance France and can be viewed here. These first audited financial statements cover a period of 14 months, from November 8, 2021, the date of creation of the company, to the end of the financial year, December 31, 2022.
The audited financial statements indicate that:
Binance France holds approximately one billion euros in crypto-assets on behalf of its users (French residents)
Binance France holds 7 million USDT for its own account
Binance France recorded a loss of €4 million in 2022, as these accounts cover 14 months of expenses, but only 6 months of income. Binance France only began receiving revenue after receiving regulatory approval from the AMF to operate in France in approximately mid-2022, while operating costs were incurred as early as November 2021 .
Binance France's revenues mainly consist of trading commissions
Binance France plans to be profitable in its 2023 accounts (12 months of revenue and 12 months of expenses)
The financial statements have been audited by RSM Paris.
Without further ado, let’s move on to the FAQ:
Why did Binance France record a loss? Is Binance a profitable company?
The 2022 accounts cover 14 months of expenses, but only 6 months of revenue. Binance France only operated as an exchange after obtaining PSAN registration, which means that the first revenues were received only from July 2022. Although not yet operational, Binance France incurred operating expenses starting in November 2021. If the revenue had been for a full year, Binance France would have recorded a profit. Binance remains a profitable company on a global scale.
Why do the accounts show expenses for the whole year, while revenues only cover half of the year?
Binance France received its PSAN registration in May 2022. Following this, French resident users signed new Terms and Conditions with Binance France from July 2022, and thus became Customers of Binance France. Once a customer of Binance France, the entity began to receive the income generated by these customers on its accounts. The expenses (including the costs related to its registration), however, began as soon as Binance France was created in November 2021.
Why does this fiscal year start in November 2021?
These financial statements cover the period from November 2021, the date of creation of Binance France, to December 2022, the closing date of this first accounting year. The 2023 financial statements will cover the period January to December.
14 million euros in operating expenses is not nothing. What did Binance France spend these €14 million in operating expenses on?
The main expenses include personnel costs and corresponding social charges, marketing costs, professional fees, administrative costs and miscellaneous taxes. Additional details are included in Note 9 to the audited financial statements.
Why did Binance France choose RSM and not one of the Big Four?
RSM is a leading audit, advisory and tax firm, recognized for its expertise, with a strong reputation, a presence in 120 countries around the world and a global team of 57,000 people . It is for these reasons that Binance France decided to call on RSM as independent auditors.
French users of Binance have been present for years. How come Binance only reports revenue from mid-2022?
Binance France was able to provide services to French residents in compliance with French regulations, after obtaining registered company status. Thanks to Binance France, French Binance users interact directly with a local, regulated and audited entity.
Why was Binance audited in France? Shouldn’t Binance be fully audited?
Audit requirements are generally determined by local laws and regulations. Any Binance entity subject to an audit complies with its obligations. So there are other Binance entities that are audited.
In many jurisdictions, private companies are not required to produce financial statements, but we believe that greater transparency on retained assets represents a market demand. So we innovated by offering proof of reserves, which allows all of our users to prove that their assets are held at a 1:1 ratio.