Backpack Secures FTX EU Acquisition: A Major Milestone for Cryptocurrency Compliance in the European Market

COINOTAG News, January 7th. The compliance-oriented cryptocurrency platform Backpack has officially announced the acquisition of FTX’s original European business, securing the MiFID II license crucial for operations within the European Union. This milestone, ratified by both the FTX Bankruptcy Court and the Cyprus Securities and Exchange Commission (CySEC), positions Backpack for significant growth in the European market by offering a compliant trading environment. The company aims to launch its services by the first quarter of 2025.

With this strategic move, Backpack EU will provide a range of cryptocurrency trading options, including spot and perpetual derivative services, making it the sole licensed provider for such products in the EU amidst increased regulatory scrutiny. The recent Markets in Crypto-Assets Regulation (MiCA) has led to the closure of several unlicensed exchanges, further solidifying Backpack’s competitive edge. The firm’s license aligns with standards set for traditional financial institutions, enabling future expansion into traditional asset classes within Europe.

Additionally, as part of the asset acquisition, Backpack EU will manage the distribution of FTX Bankruptcy claims to impacted users, representing a key obligation to approximately 110,000 former clients. The platform promises an integrated user experience with traditional payment methods, reinforcing its commitment to compliant financial services. The Backpack ecosystem encompasses several components, including the Backpack Exchange and Wallet, alongside participation in the vibrant Solana NFT market.