Binance France audited, holds €1 billion in crypto
Binance France has unveiled its first-ever audited financial statements, following its ability to secure registered status in the country.
A recap of the report
In adherence to local regulatory and legal mandates, Binance France commits to publishing these audited financial statements annually.
The financial statements covering 14 months, beginning with the company’s inception on Nov. 8, 2021, and ending with the financial year ending on Dec. 31, 2022.
The report goes on to share that Binance France holds approximately €1 billion in crypto assets on behalf of its users, specifically catering to French resident Binance users.
Additionally, the company has 7 million USDT in its account.
The financial records for 2022 indicate a €4 million loss, which can be attributed to the 14 months of expenses covered, while only six months of revenue were accounted for.
Notably, Binance France commenced its revenue generation only after obtaining regulatory approval from the AMF, which occurred around the midpoint of 2022. However, the company’s operating costs began in November 2021.
The report also quotes €14 million in operating expenses, raising questions about the specific allocation of funds by Binance France.
In an added frequently asked questions section, the company reveals that major expenses were attributed to staff costs, related payroll charges, marketing endeavors, professional fees, administrative outlays, and taxes.
Binance compliant
Despite the Binance France audit as part of compliance measures, one month earlier, on June 16, the French daily, Le Monde, highlighted that the exchange was the subject of a preliminary investigation led by the Judicial Investigation Service of Finance under the direction of the specialized interregional jurisdiction of Paris since February 2022.
The investigation was initiated based on cited allegations from the Paris Prosecutor’s Office, which include “acts of illegal exercise of the function of a service provider on digital assets (PSAN), and acts of aggravated money laundering, by participating in investment operations, concealment, conversion, the latter being carried out by perpetrators of offenses having generated profits.”
The focal point of the inquiry is Binance’s alleged failure to adhere to or comply with know-your-customer (KYC) procedures designed to monitor users and identify potential money laundering activities. Therefore, this report comes at a crucial time to show that the exchange is remaining, or attempting to remain compliant, amidst regulatory uncertainty in other operating countries.
