By Hassan Mehmood (Saudi Arabia)
Binance is the biggest cryptocurrency exchange in the world by trading volume. However, the firm has recently run into regulatory troubles with financial regulators in several jurisdictions including the USA.
There are various places where Binance has decided to wrap up its operations and there are also rumors about key employees leaving the firm. However, Binance has continued its efforts to maintain a calm demeanor.
To this effect, the French wing of Binance has recently publicized the audited version of its financial reports for the last financial year. The report has revealed that the firm sustained an accumulated loss of 4 million euro in the previous year.
Binance officials have maintained that the loss arises from the lack of corroboration between expenses and revenues for 2022. The audit was performed by RSM France as per the update shared on the latest Binance blog.
Binance France Publishes Audited Balance Sheet for 2022
RSM Finance is an auditing and accounting firm based in Paris. The firm has performed a detailed audit of the Binance financial report for the previous year for its France office. The financial report in question has covered a comprehensive period of 14 months spanning from November 2021 to December 2022.
Also read:The audit report has revealed an accumulated loss of 4 million euros. On this account, Binance has maintained that the report contained cost accounts starting from November 2021.
However, the discrepancy has occurred because the report in question only accounts for revenues generated after July 2022. It means that there is an 8-month gap between the cost and revenue entries in the financial report. Binance France has declared that it does not have approval from the Autorite des Marches Financiers (AMF).
The European office of the firm in the country acquired a virtual assets service provider or VASP license from the regulators in May 2022. The firm became operational as a cryptocurrency exchange the following month.
The audit of Binance France finance has revealed that at present the firm holds 1 billion euro in consumer funds. In addition, the firm also has 7 million USDT in company reserves allocated to the French wing.
The major portion of the revenue held at Binance France is collected in the form of trading fees collected from its users. On the other hand, Binance officials have shared optimism about its audit report for the financial year 2023. The cryptocurrency exchange has maintained that the financial report for the current year is only going to comprise income and expense data for 12 months only.
At the same time, the leadership of the crypto trading platform is positive that the firm will report considerable profits when it publishes the audit report for the current financial year.
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