Platform Launch and Licensing
Backpack Exchange announced the official launch of Backpack EU, its European subsidiary licensed under the EU’s MiFID II framework. Operating out of Cyprus, the division offers perpetual futures products with up to 10x leverage, positioning itself as one of the first fully regulated crypto derivatives venues in the region.
The launch follows the acquisition of FTX EU, which resolved outstanding customer claims and initiated fund distributions earlier this year. Backpack completed the acquisition process after regulatory approval, reinforcing its commitment to transparency and user compensation in the aftermath of FTX’s collapse.
Product Offering and Market Positioning
- Trading pairs: Over 40 crypto derivatives pairs available.
- Leverage: Up to 10x across perpetual futures contracts.
- Proof-of-reserves: Daily zero-knowledge proof attestations for on-chain assets.
CEO Armani Ferrante highlighted Backpack’s proof-of-reserves system, publishing validator attestations daily to demonstrate full backing of customer assets. The exchange aims to differentiate through compliance and security, catering to both retail and institutional clients seeking advanced trading products.
Strategic Roadmap
Backpack plans geographic expansion beyond Europe, with Japan identified as the next licensing target. The firm intends to replicate its MiFID II model in other jurisdictions, leveraging acquired FTX EU infrastructure and user base to accelerate regional growth. Ongoing development includes integration of additional digital asset spot and derivatives services.
Industry Impact
The regulated entry of crypto derivatives exchanges under robust frameworks like MiFID II signals maturation of the market, offering compliance-aligned alternatives to offshore venues. Backpack’s model may encourage further consolidation and establish precedents for regulated trading environments, enhancing overall market integrity.
As Backpack EU continues to onboard users, the broader crypto ecosystem monitors regulatory engagement and product innovation, marking a shift toward standardized, institutionally accessible trading platforms in key global markets.
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