FTX Alumni’s Backpack Exchange Completes Acquisition of FTX EU, Prepares to Launch MiFID II-Regulated Crypto Products

 Backpack, a crypto exchange founded by former FTX executives, has officially acquired FTX EU, the European arm of the defunct FTX platform. This strategic acquisition, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), marks a significant milestone in Backpack’s expansion into the European cryptocurrency market.

Backpack’s Expansion into Regulated Crypto Trading in Europe

The acquisition positions Backpack to provide regulated crypto derivatives and other financial products tailored for European users. According to an announcement on the company’s blog, Backpack’s newly established European branch will offer a variety of crypto derivatives, including perpetual futures.

This move comes at a time when other major exchanges are retreating from Europe, leaving a noticeable gap in the regulated crypto derivatives market. Backpack CEO Armani Ferrante highlighted the importance of this development, stating, “Becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step in bringing transparent, secure, and regulated crypto trading to an underserved European market.”

Key Features of Backpack EU

In addition to launching new crypto derivatives products, Backpack EU will also play a pivotal role in managing FTX bankruptcy claims for FTX EU customers. The platform plans to integrate traditional payment systems, enabling users to make seamless payments across Europe through SEPA and wire transfers. These features are designed to enhance user convenience and broaden access to regulated crypto trading within the European Union.

Timeline for Backpack EU Launch

Backpack plans to reactivate its EU license and launch Backpack EU in the first quarter of 2025. While an exact launch date has not been disclosed, the company’s commitment to regulatory compliance and market expansion underscores its readiness to meet European users' needs.

From Wallet to Exchange: Backpack’s Journey

Founded in 2022 by Armani Ferrante, an early employee of Alameda Research, Backpack initially launched as the non-custodial Backpack Wallet. During the November 2022 collapse of FTX, Backpack faced significant financial challenges, losing $14.5 million—a staggering 88% of its operating funds. Despite these setbacks, the team persevered, continuing to innovate with minimal funding.

SEO Optimization: Why Backpack’s Expansion Matters

The acquisition of FTX EU and the planned launch of MiFID II-regulated crypto products represent a groundbreaking development in the European cryptocurrency landscape. Backpack’s move to fill the regulatory gap left by other exchanges positions it as a leader in secure and compliant crypto trading. European crypto enthusiasts and investors can look forward to a platform designed to meet the highest standards of transparency and security.

By integrating traditional payment methods and offering innovative products like perpetual futures, Backpack aims to redefine the European crypto market while maintaining a strong focus on regulatory compliance. As the first quarter of 2025 approaches, all eyes are on Backpack and its ambitious plans to reshape the future of crypto trading in Europe.

Conclusion

Backpack’s acquisition of FTX EU and its commitment to launching MiFID II-regulated crypto products demonstrate a forward-thinking approach to market expansion. As the company prepares to relaunch under its EU license, it is poised to become a key player in the European crypto space, offering users a secure, transparent, and highly regulated trading experience.