Backpack Exchange has announced the acquisition of FTX EU, enhancing its presence in Europe. This move is expected to bolster regulated crypto trading in the region.
Impact on the European Crypto Market
With the acquisition of FTX EU, Backpack aims to lead Europe's regulated crypto trading space. The new Backpack EU entity will offer perpetual futures and other crypto derivatives, addressing a market need after the exit of unregulated offshore exchanges.
Market Entry and Product Offerings
Backpack EU is slated to launch in the first quarter of 2025, pending the reactivation of its MiFID II license. It will integrate traditional payment systems, such as SEPA payments and wire transfers. The product lineup includes perpetual futures, comprehensive crypto derivatives, and enhanced payment rails.
Regulatory Compliance and Fund Recovery
As part of the acquisition, Backpack EU will manage the distribution of funds to FTX EU customers. Mr. Ferrante highlighted the importance of rebuilding consumer trust, noting commitments to swiftly and safely return customer funds.
The acquisition of FTX EU marks a strategic move for Backpack Exchange in tapping into the European cryptocurrency market. Regulatory compliance and rebuilding customer trust are central to this endeavor.
