Backpack, a crypto exchange founded by former FTX executives, has made a significant move into the European market by acquiring FTX EU, the European arm of the now-defunct FTX platform. This acquisition, which was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a strategic step for Backpack in expanding its presence in Europe.
The acquisition of FTX EU provides Backpack with access to FTX EU’s Markets in Financial Instruments Directive (MiFID) II license under CySEC. This license allows Backpack to offer compliant crypto derivatives, such as perpetual futures, across the EU. By leveraging this license, Backpack aims to fill the gaps left by unregulated offshore exchanges and meet the growing demand for secure and regulated crypto trading solutions in Europe.
Armani Ferrante, CEO of Backpack Exchange, emphasized the company’s commitment to upholding high regulatory standards and providing transparent, secure, and regulated crypto trading services to the European market. The integration of traditional payment systems, including Single Euro Payments Area (SEPA) transfers and wire payments, will further enhance the user experience on Backpack EU’s platform.
Backpack EU is set to launch its operations in the first quarter of this year. In addition to expanding its services in Europe, the exchange is dedicated to resolving outstanding customer claims related to FTX EU’s bankruptcy. Backpack EU will oversee the distribution of approved claims to ensure that affected customers regain access to their funds promptly and safely.
The roots of Backpack can be traced back to FTX, with co-founders Ferrante and Can Sun playing key roles in the former platform. Despite their ties to FTX, Backpack is forging a new path by prioritizing regulatory compliance and customer trust. The exchange has already expanded to 11 US states, including California and Colorado, signaling its commitment to growth and expansion.
In conclusion, Backpack’s acquisition of FTX EU marks a significant milestone in its European expansion strategy. By obtaining a MiFID II license and focusing on regulatory compliance and customer restitution, Backpack is poised to become a leading player in the European crypto trading market.