Backpack acquires FTX EU in major European expansion move
Backpack acquires FTX EU, securing MiFID II compliance
Backpack Exchange, a globally regulated cryptocurrency platform, has announced the acquisition of FTX EU, the European division of the now-defunct FTX, marking a significant step in its European expansion.
The acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), highlights Backpack's commitment to providing secure and regulated cryptocurrency trading solutions across Europe, according to PR Newswire.
Expansion of offerings and entry into the derivatives market
Backpack Exchange is renowned for its innovative and user-friendly platform, designed to serve both experienced and new web3 users. The platform supports clients in 150 countries, with a trading volume exceeding $60 billion. By acquiring FTX EU, Backpack obtains a MiFID II license, positioning itself as a key player in the regulated cryptocurrency market of the European Union.
A notable addition to Backpack's offerings will be crypto derivatives, including perpetual futures—a market largely unregulated in the EU. Many offshore exchanges have exited the region due to regulatory crackdowns, creating a gap that Backpack aims to fill.
“As many international exchanges exit the European Union, obtaining a MiFID II license demonstrates our commitment to upholding the highest regulatory standards. This is a significant step towards delivering transparent, secure, and regulated crypto trading in an underserved European market,” stated Armani Ferrante, CEO of Backpack Exchange.
Client restitution and regulatory compliance
A key part of the deal involves Backpack EU's responsibility for processing court-approved bankruptcy claims for FTX EU’s affected clients. Highlighting the importance of this process, Ferrante emphasized: “Customer restitution is a crucial step in rebuilding trust and confidence in the industry, and Backpack is committed to returning FTX EU clients' funds as quickly and safely as possible.”
Future plans and financial system integration
In addition to regulatory compliance, Backpack EU plans to offer seamless payment solutions through integration with traditional financial systems. This includes instant transactions within the Single Euro Payments Area (SEPA) and support for wire transfers in major currencies across Europe.
The activation of Backpack EU's license is expected to be completed by the platform's launch in Q1 2025. With this acquisition, Backpack Exchange aims to set a new standard for regulated crypto services in the European market, providing enhanced access to secure and transparent trading solutions.
