Backpack Exchange Expands into European Market with FTX EU Acquisition

Backpack, a cryptocurrency exchange founded by former FTX executives, has made a significant move into the European market by acquiring FTX EU, the European arm of the defunct FTX platform. The acquisition, approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), was announced on January 7.

European Expansion and Regulatory Compliance

The acquisition grants Backpack access to FTX EU’s Markets in Financial Instruments Directive (MiFID) II license under CySEC, enabling the exchange to offer compliant crypto derivatives, including perpetual futures, across the EU. This move allows Backpack to address gaps left by unregulated offshore exchanges while meeting the increased demand for secure and regulated crypto trading solutions in Europe.

According to Armani Ferrante, CEO of Backpack Exchange, “Becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market.”

Enhancing User Experience

To enhance user experience, Backpack EU plans to integrate traditional payment systems, including Single Euro Payments Area (SEPA) transfers and wire payments, offering quick and low-cost options. The exchange expects to launch its EU operations in the first quarter of this year.

Resolving Outstanding Customer Claims

Backpack is committed to resolving outstanding customer claims tied to FTX EU’s bankruptcy. The newly formed Backpack EU will handle the distribution of approved claims, ensuring that affected customers regain access to their funds efficiently. Ferrante emphasized, “Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible.”

A New Path Forward

Despite its ties to FTX, Backpack is prioritizing regulatory compliance and customer trust. The exchange has expanded to 11 US states, including California and Colorado, and is now taking steps to establish itself in the European market. With its commitment to transparency, security, and regulatory compliance, Backpack is carving a new path in the cryptocurrency industry.

Conclusion

In summary, Backpack Exchange has acquired FTX EU, gaining access to the European market and a MiFID II license. The exchange is committed to resolving outstanding customer claims and prioritizing regulatory compliance and customer trust. With its expansion into the European market, Backpack is poised to provide secure and regulated crypto trading solutions to an underserved market.

Source: Cryptoslate.com

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