Binance France Reports Loss of 4 Million Euros in 2022
The French branch of crypto exchange Binance announced its financial results for the past year last Friday. This shows that the exchange has suffered a loss of 4 million euros in 2022. In addition, the documents make it clear how much crypto it owns.
Millions of losses for bitcoin exchange Binance
According to French laws and regulations, crypto platforms must publish their financial results every year. The recently published documents show Binance’s financial situation from November 8, 2021 to December 31, 2022.
What is striking from the results is that Binance, an exchange like Bitvavo, has suffered a loss of 4 million euros in France during this period. While this is a negative result, Binance clarifies in a statement:
“Binance France only received revenue after it was able to serve users after receiving regulatory approval from the [Franse toezichthouder] AMF, approximately mid-2022. Meanwhile, Binance France incurred operating expenses from November 2021”
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In short, the exchange was only able to generate income halfway through 2022, but in the meantime it incurred costs. As a result, the final financial result was negative.
1 billion euros in crypto from customers
In the documents, the exchange also published how much client crypto it has under management. Binance has 1 billion euros worth of crypto from French customers under management.
It is not clear which crypto it is exactly. But it is likely that it is at least bitcoin (BTC) and other crypto supported by Binance.
Furthermore, the French branch of the company owns 7 million USDT.
What is further clear from the documents is that Binance France derives the vast majority of its income from trading costs. All in all, Binance expects to return to profit in the country in 2023.
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So it was not only in France that Binance had a hard time due to the increasingly strict crypto regulations. It also encountered a wall in the Netherlands. That wall turned out to be too high in the end. The yellow giant was therefore forced to close its doors to the Dutch.
The Dutch have until August 17 to get their crypto from Binance. The exchange recently issued an important warning about this.
Despite suffering a loss of 4 million euros in 2022, Binance France remains optimistic and expects to return to profitability in 2023. The financial results show that the exchange has 1 billion euros worth of crypto under management from French customers. Binance’s main source of income in France comes from trading costs. However, the strict crypto regulations not only affected Binance in France but also in the Netherlands. With the closure of its services for Dutch users, Binance continues to face challenges in the ever-evolving crypto industry.