Key Takeaways
- Backpack Exchange acquired FTX EU after approvals from a U.S. court and CySEC.
- The deal secured a CySEC license, enabling regulated cryptocurrency services across Europe.
- Backpack prioritized refunds to FTX EU customers before launching spot, margin, and futures trading.
Backpack Exchange has acquired FTX EU, the European arm of the collapsed cryptocurrency exchange FTX, following approvals from a U.S. bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). Notably, the deal grants Backpack Exchange a CySEC license, enabling it to operate as a regulated digital asset service provider in Europe.
The acquisition marks a significant step for Backpack, providing access to FTX EU’s existing regulatory framework and strengthening compliance capabilities. The Cyprus-based license allows the platform to offer cryptocurrency trading and custody services within the European Union under MiCA (Markets in Crypto-Assets) regulations.
In a January 7 post on X, Backpack said the company’s first priority is to facilitate the return of EURO-denominated funds to former FTX EU customers, ensuring repayments are handled in coordination with the FTX bankruptcy estate.
Once customer refunds are processed, Backpack plans to roll out a comprehensive suite of trading products, including spot, margin, and futures markets. Additionally, Backpack aims to revive crypto perpetual contracts (perps) trading in Europe, offering advanced derivatives products that were previously disrupted following FTX’s collapse.
Armani Ferrante, CEO of Backpack Exchange in response to the announcement, said, “We’re fully focused on working with all the relevant parties to return customer funds in the EU. It’s our top priority.”
The company CEO further stated in his post that users with FTX EU claims should standby for guidelines on how to obtain them.
Industry Impact and Future Outlook
The acquisition highlights renewed efforts to professionalize the cryptocurrency industry amid tightening global regulations. Some speculate that the move could attract institutional investors seeking safer platforms following past exchange failures.
Backpack Exchange aims to leverage the deal to establish itself as a leader in Europe’s cryptocurrency sector. Future plans include expanding product offerings and perhaps integrating decentralized finance (DeFi) tools into its ecosystem.
More details on Backpack’s plans are expected in the coming weeks as the integration process unfolds.
