Backpack Opens Regulated Perpetuals Exchange in Europe After Buying FTX EU

Backpack Exchange, a leading global cryptocurrency trading platform, announced on Monday the official launch of its European division, Backpack EU. Based in Cyprus and operating under the regulatory framework of the European Union’s MiFID II, the exchange is positioning itself as one of the first fully regulated venues in Europe to offer crypto derivatives, starting with perpetual futures.

In an interview with CoinDesk, Armani Ferrante, the CEO of Backpack, stated that they will be one of the few platforms in Europe, along with Kraken, offering perpetual futures trading. This move comes after Backpack’s acquisition of FTX EU earlier this year. Despite initial challenges with the sale of FTX EU, the issue has been resolved, and the exchange has begun distributing funds to former FTX EU customers, fulfilling their commitment to compensate users affected by the collapse of Sam Bankman-Fried’s crypto empire.

Backpack EU will provide users access to over 40 trading pairs with up to 10x leverage, catering to both retail and institutional traders. The platform aims to serve as a compliant gateway for advanced crypto trading products, emphasizing transparency and security in the wake of recent exchange failures.

Ferrante highlighted the importance of building trust in the digital asset space through consistent good practices. The exchange utilizes a proof-of-reserves system, publishing validators’ attestations daily using zero-knowledge proofs. This system aims to set a standard for transparency and accountability in the industry.

Since its inception in 2024, Backpack has processed over $160 billion in trading volume globally. The team plans to expand its operations into other regions, with Japan being a potential target for future licensing.

In conclusion, Backpack EU’s launch marks a significant milestone in the company’s journey towards providing a secure and regulated platform for crypto trading in Europe. With a focus on transparency and trust-building, the exchange is poised to make a positive impact on the digital asset industry.