Backpack, the cryptocurrency exchange founded by former FTX executives, has taken a major step into the European market by acquiring FTX EU, the European arm of the defunct FTX platform.
According to a January 7 statement, the acquisition was approved by the FTX Bankruptcy Court and the Cyprus Securities and Exchange Commission (CySEC).
Expansion in Europe
The acquisition grants Backpack access to the FTX EU's Markets in Financial Instruments Directive (MiFID) II license under CySEC, allowing it to offer compliant crypto derivatives, including perpetual futures, across the EU.
This move will enable Backpack to meet the growing demand for secure and regulated crypto trading solutions in Europe, while addressing the gap left by unregulated offshore exchanges.
Armani FerranteCEO of Backpack Exchange, said:
“As many international exchanges exit the European Union, becoming a MiFID II authorized entity demonstrates our dedication to meeting the highest regulatory standards and is transparent, secure and regulated. This is an important step in bringing advanced crypto trading to underserved European markets.”
To improve the user experience, Backpack EU plans to integrate traditional payment systems such as Single Euro Payments Area (SEPA) money transfers and wire transfers to provide fast and low-cost options.
The exchange plans to start EU operations in the first quarter of this year.
FTX tie
Meanwhile, the exchange is working to resolve outstanding customer claims related to FTX EU's bankruptcy.
Ferrante said the newly formed Backpack EU will handle the distribution of approved claims and ensure affected customers can efficiently regain access to their funds. He added:
“Returning funds to customers is an important step in rebuilding trust in the industry, and Backpack is committed to returning FTX EU customers’ funds as quickly and securely as possible.”
Backpack's origins can be traced back to FTX, with co-founders Ferrante and Can Sun playing key roles in the now-defunct platform.
Mr. Ferrante previously worked as a software developer at Alameda Research, and Mr. Sun served as FTX's general counsel and was a key witness against convicted FTX founder Sam Bankman Fried.
Despite these relationships, Backpack is forging a new path by prioritizing regulatory compliance and customer trust. Last year, the company expanded to 11 U.S. states, including California and Colorado.
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