Backpack Exchange Acquires FTX EU, Prioritizing Customer Fund Returns

Backpack Exchange acquires FTX EU, prioritizing customer fund returns, MiFID II license, and expanding crypto trading across Europe.

Backpack Exchange has acquired FTX EU and its MiFID II license. This acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission. The European arm of FTX, once a leading crypto exchange, collapsed last year. Backpack Exchange is now taking responsibility for the European arm. Backpacks official X account shared that Crypto perpetual trading in Europe is also returning.

Returning customer EURO funds on behalf of the FTX estate is Backpack Exchange’s top priority. Following this, they intend to introduce a full range of trading products. They include spot trade, margin trade, and futures trade.

This was a hugely important step in the rebuilding of trust in the crypto industry. Armani Ferrante, CEO of Backpack Exchange, said customer restitution was imperative. Keeping customer funds safe and returned quickly is priority, he said.

In a series A financing round in early 2024, it raised $120 million. As a result, the exchange was acquired a MiFID II license which enabled it to expand its services across the EU. Backpack has already been granted a license from the Dubai Virtual Assets Regulatory Authority before this.

Backpack Exchange to Provide Consumer Protection Under MiCA Regulation

The new arm of Backpack Exchange, Backpack EU, will provide crypto derivatives. Perpetual futures are included in these and will be available throughout the EU. It plans to go live in the first quarter of 2025. It will also enable payments through wire transfer and SEPA in major European currencies, as well as fiat.

The EU’s Markets in Crypto-Assets (MiCA) regulation is being implemented as this acquisition takes place. MiCA will therefore set the standards and guidelines for virtual asset providers such as exchanges, custodians and wallet providers and protect consumers. Becoming a MiFID II licensed entity demonstrates Backpack’s determination to completely adhere to high regulatory standards, explains Armani Ferrante.

Backpack Exchange’s newfound status is a big deal as many international exchanges exit the EU. For its part, it will help bring to Europe transparent, secure and regulated crypto trading, Ferrante added. The importance of that is even greater because the EU crypto market is growing and it needs trusted services.

The news follows CySEC’s recent extension of its suspension of FTX EU. It banned FTX EU from operating but permitted it to refund clients. Backpack Exchange is committed to finishing this process and returning funds to FTX EU users as quickly as possible.

In short, the acquisition of FTX EU by Backpack Exchange is a big deal. This shows their commitment to be expanding the market in Europe and conforming to international regulations.

 

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