French Binance Reports IDR 47 Billion Loss

French Binance announced financial reports. (Photo; Doc. Coincu)

JAKARTA - The first financial report from France's Binance shows that the crypto exchange suffered a loss of 4 millioneuro (around Rp47 billion) over a 14-month period from its establishment in November 2021 to December 2022.

During that period, France's Binance spent a total of 14 millioneuro (IDR 234 billion) for various purposes, including staff salaries, marketing, administration, taxes, and professional costs. However, the resulting income only reached 10 millioneuro (IDR 167 billion) in the same period.

Binance explained that the loss occurred because they had only earned six months of income from 14 months of expenses. Despite operating since November 2021, this exchange has not been able to serve customers until it has received regulatory approval from the Autorite des marches financials (AMF) in mid-2022.

For 2023, France's Binance expects to record a profit, in which it will have a full year-long revenue to cover operating costs. An audit from Paris Hospital, a leading audit service provider, has audited France's Binance and issued a report on the company's financial condition.

In addition, France's Binance also revealed that it stores 1 billioneuro worth of crypto assets (Rp16 trillion) for their users. Although details were not disclosed, the platform stated that it kept 7 million US dollars (Rp105 billion) in stablecoinUSDT in its account.

However, the translated audit report shows that RSM provides warnings regarding the "smoothness and consistency" of information in annual reports. The responsibility to make reports that are in accordance with French accounting rules and principles is the responsibility of the company's management.

While France's Binance remains optimistic about its prospects in France, its prospects in several other European countries look gloomy as it faces challenges in obtaining regulatory approval to operate in these markets, including the Netherlands, Cyprus, Britain, and others.

France's Binance is working to prepare itself for the upcoming Markets in Crypto Assets (MiCA) regulations, which are scheduled to take effect in 2024. MiCA will regulate a regulatory and licensing framework for the crypto industry, and Binance is committed to ensuring compliance with the new regulations.