Backpack Exchange Acquires FTX EU: New Era for Regulated Crypto Derivatives in Europe

FTX EU Sold to Backpack Exchange for $32.7 Million, Aims to Lead EU Derivatives Market

Backpack Exchange Takes Over FTX EU in $32.7M Deal, Set to Launch Perpetual Futures

Backpack Exchange Steps Up with $32.7M Acquisition of FTX EU to Offer Regulated Derivatives

New Hope for Crypto in Europe: Backpack Exchange Acquires FTX EU for $32.7 Million

FTX EU, the European arm of Sam Bankman-Fried’s now-bankrupt cryptocurrency trading empire, has been sold to Backpack Exchange, a crypto trading company founded by former Alameda Research and FTX employees.

FTX EU, which held a MiFID II license under the Cyprus Securities and Exchange Commission (CySEC), was acquired by Backpack for $32.7 million, according to the exchange.

Backpack’s new European division will offer a full suite of crypto derivatives across the EU, beginning by leveraging its position as the only regulated perpetual futures provider in Europe, according to Armani Ferrante, CEO of Backpack Exchange.

Several crypto trading firms have applied for a MiFID license, which allows companies to offer crypto-asset services under Europe’s new Markets in Crypto Assets (MiCA) regime once they have notified the relevant competent national authority.

Currently, Bitstamp and Coinbase have obtained their MiFID II licenses, while D2X, based in the Netherlands, has also received a license and plans to introduce USD-denominated futures and options early this year. Other new entrants also aim to shift the dominance of the crypto derivatives market away from Panama-based centralized exchange Deribit.

Ferrante said Backpack’s MiCA notification has been submitted, and he expects the company to go live in the first quarter of 2025.

“Although a few firms have been able to obtain approval for a limited form of derivatives license, we’re not aware of any players currently offering perpetuals and live in the EU, including Coinbase and Bitstamp,” Ferrante said via email. “Once we return FTX EU customers’ funds, we’re excited to begin serving a regulated perpetual futures product as a priority.”

A full suite of products is in development, Ferrante added, though some may not be available by Q1.

Backpack, whose founders have contributed to the Solana ecosystem and established a successful wallet and NFT business, raised $17 million in funding last year.

Also Read – 

Acer Debuts AI-Ready Swift Go 14 Laptop with New Intel Core Ultra Processors