Backpack Exchange, a leading cryptocurrency platform, has announced the acquisition of FTX EU, enhancing its presence in Europe and paving the way for regulated crypto trading.
Impact on the European Crypto Market
The acquisition of FTX EU positions Backpack Exchange to lead in the regulated crypto trading space in Europe, which is vital after the exit of unregulated exchanges. The new Backpack EU entity will offer perpetual futures and other derivatives, catering to an 'underserved market'.
Regulatory Compliance and Fund Restitution
By adhering to MiFID II regulations, Backpack EU aims to rebuild trust in the cryptocurrency sector. The company will also oversee the distribution of funds owed to FTX EU customers. Mr. Ferrante emphasized the importance of returning customer funds, which is crucial in restoring trust.
Launch Timeline and Product Offerings
Backpack EU is expected to launch in the first quarter of 2025, pending MiFID II license reactivation. The new entity will integrate traditional payment systems for seamless transactions. The company plans to offer regulated perpetual futures, comprehensive crypto derivatives, and enhanced payment rails supporting instant, low-cost transactions.
The acquisition of FTX EU strengthens Backpack Exchange's position in the European market, affirming its commitment to regulation and innovation. The company aims to offer new opportunities in the developing regional market.
