Backpack is a crypto-exchange founded by former FTX executives. It has now taken a big step on the European Market by acquiring FTX EU.
The FTX bankruptcy and CySEC approved the acquisition, according to a 7th January statement.
European expansion
The acquisition grants Backpack access to FTX EU’s Markets in Financial Instruments Directive (MiFID) II license under CySEC, enabling it to offer compliant crypto derivatives, including perpetual futures, across the EU.
Backpack would be able to fill in the gap left by unregulated off-shore exchanges and meet increased demand for secure, regulated, and safe crypto trading solutions across Europe.
Armani FerranteBackpack Exchange’s CEO said:
“As many international exchanges exit the European Union, 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.”
Backpack EU will integrate the traditional payment methods, such as SEPA transfers, wire payments and Quick and Low-Cost options, to enhance its user experience.
Exchange expects its EU operations to begin in the first three months of 2019.
FTX ties
Meanwhile, the exchange is committed to resolving outstanding customer claims tied to FTX EU’s bankruptcy.
Ferrante said that the newly-formed Backpack EU would handle the distribution and payment of claims approved, making sure affected customers have access to funds quickly. He also added:
“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.”
Backpack’s origins trace back to FTX, with co-founders Ferrante and Can Sun playing pivotal roles in the now-defunct platform.
Ferrante previously worked as a software developer at Alameda Research, while Sun served as FTX’s general counsel and was a key witness against Sam Bankman-Fried, the convicted founder of FTX.
Backpack, despite its ties to the industry, is forging a new course by placing a high priority on regulatory compliance. In the past year, Backpack expanded its operations to eleven US states including California and Colorado.
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