Backpack, a crypto exchange founded by former FTX executives, has made a strategic move into the European market by acquiring FTX EU, the European branch of the now-defunct FTX platform. This acquisition, as stated in a press release on January 7, has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
One of the key advantages of this acquisition is that Backpack now has 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, to customers across the European Union. This move is particularly significant as it helps fill the gap left by unregulated offshore exchanges, while also meeting the rising demand for secure and regulated crypto trading solutions in Europe.
Armani Ferrante, the CEO of Backpack Exchange, emphasized the company’s commitment to upholding the highest regulatory standards and providing transparent, secure, and regulated crypto trading services to the European market. The integration of traditional payment systems, including SEPA transfers and wire payments, is also expected to enhance user experience on the platform. Backpack EU is set to launch its operations in Europe in the first quarter of this year.
In addition to expanding its presence in Europe, Backpack is also focused on resolving outstanding customer claims associated with FTX EU’s bankruptcy. The newly formed Backpack EU will oversee the distribution of approved claims to ensure that affected customers can recover their funds efficiently. Restoring customer trust and confidence in the industry is a top priority for Backpack, and the company is dedicated to returning FTX EU customers’ funds as quickly and safely as possible.
Although Backpack has ties to FTX through its co-founders, Ferrante and Can Sun, the company is forging its own path by prioritizing regulatory compliance and customer trust. Last year, Backpack expanded its operations to 11 US states, including California and Colorado. This demonstrates the company’s commitment to growth and innovation in the rapidly evolving crypto landscape.