Home Business Bitcoin exchange Binance loses millions and explains why

Bitcoin exchange Binance loses millions and explains why

Bitcoin exchange Binance loses millions and explains why

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 report their financial results every year to publish. 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. Although this is a negative result, clarified Binance in a statement:

“Binance France only received revenue after being able to serve users after receiving regulatory approval from the (French regulator) AMF, about mid-2022. Meanwhile, Binance France incurred operating expenses from November 2021”

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 also becomes 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.

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 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.

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