Backpack Exchange, a leading global cryptocurrency platform, announced the acquisition of FTX EU, the European arm of the defunct FTX Exchange. This strategic move strengthens Backpack’s presence in Europe, setting the stage for regulated crypto trading across the region. 

The acquisition, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a milestone for Backpack Exchange as it plans to offer innovative services in a highly regulated market.

A Game-Changer for the European Crypto Market

With this acquisition, Backpack Exchange aims to dominate Europe’s regulated crypto trading space, which has seen a vacuum due to the exit of unregulated offshore exchanges. The new Backpack EU entity is set to offer perpetual futures and other crypto derivatives, targeting an 'underserved market.'

Armani Ferrante, CEO of Backpack Exchange, emphasized the importance of regulatory compliance, stating:

“Becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and bringing secure, transparent crypto trading to to an underserved European market.”

By adhering to MiFID II regulations, Backpack EU aims to rebuild trust in the cryptocurrency sector, an essential step in light of the FTX collapse and broader market uncertainties.

As part of the acquisition, Backpack EU will oversee the distribution of funds owed to FTX EU customers under the court-approved bankruptcy claims process. 

Mr. Ferrante noted:

“Customer restitution is a crucial step to rebuild confidence in the industry. Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible”

Launch Timeline and Product Offerings

Backpack EU is expected to go live in the first quarter of 2025, pending the reactivation of its MiFID II license. The new entity will integrate traditional payment systems, including SEPA payments and wire transfers, to offer seamless transactions.

The exchange plans to provide:

• Perpetual Futures: A regulated offering that fills a significant gap in the European market.
• Comprehensive Crypto Derivatives: Tailored for institutional and retail traders seeking secure trading environments.
• Enhanced Payment Rails: Supporting instant, low-cost transactions in major currencies.