Backpack Acquires FTX EU to Become the Solely Compliant Perpetual Futures Trading Platform in Europe

BlockBeats News, January 7th, Compliance-oriented cryptocurrency exchange platform Backpack today announced the successful acquisition of the original FTX European business holding the European Union's MiFID II license. This acquisition has been approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marking a significant step for Backpack in expanding globally and providing a secure, compliant trading solution for the European market. Backpack EU is expected to officially launch in the first quarter of 2025.

Through this acquisition, Backpack EU will provide various cryptocurrency spot and derivative services, including perpetual contracts, within the European Union. Currently, influenced by the enforcement of the EU's Markets in Crypto-Assets Regulation (MiCA) and stricter legal actions, multiple unlicensed offshore exchanges have been forced to close their derivative businesses in Europe. Backpack becomes the EU's only operating entity holding a license for crypto derivative services, including perpetual contracts. As a developed economy, the EU region's trading volume can account for 20-30% of the total global business volume of various cryptocurrency exchanges. The license obtained by Backpack EU is similar to licenses held by traditional financial investment institutions in Europe and will allow the provision of more traditional financial services in Europe, including stocks and bonds.

As part of the acquisition, Backpack EU will also take on the responsibility of distributing FTX bankruptcy claim payments to former FTX EU users. According to earlier FTX bankruptcy documents, FTX EU has at least 110,000 retained users. In addition to providing compliant product services, Backpack EU will also achieve seamless integration with traditional payment systems, including instant, low-cost Single Euro Payments Area (SEPA) payments and bank transfer services for major regional currencies.

The Backpack ecosystem includes Backpack Exchange, Backpack Wallet, and the Solana ecosystem's top-ranked NFT series, Mad Lads. Backpack, valued at $120 million last February, completed a $17 million strategic Series A funding round led by Placeholder, with participation from Hashed, Robot Ventures, Amber Group, Wintermute, Jump Crypto, Selini Capital, Delphi Digital, and others.