Backpack Exchange Fills European Crypto Derivatives Void with FTX EU Acquisition

Backpack Exchange is set to expand its presence in the European Union (E.U.)

cryptocurrency

market, following its acquisition of FTX EU. The deal, approved by the Cyprus Securities and Exchange Commission (CySEC) and the FTX bankruptcy court, enables Backpack to relaunch the MiFID II-licensed entity as Backpack EU, with plans to offer a full suite of regulated crypto derivatives later in the first quarter of 2025.

This expansion comes as Europe grapples with a scarcity of regulated providers in the crypto derivatives space. Backpacks entry, alongside competitors like Coinbase, Bitstamp, and the Netherlands-based D2X, could provide much-needed alternatives to unregulated offshore exchanges like Panama-based Deribit, which currently dominates the market.

CEO Armani Ferrante emphasized the importance of regulatory compliance in Backpacks strategy: “As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards.”

Backpack EU will aim to attract institutional and retail traders by integrating features like perpetual futures, seamless fiat-to-crypto payment systems (including SEPA transfers), and secure fund management. The platforms regulated status could make it an appealing choice for users seeking safer options in a market often associated with high risks.

Another critical aspect of the acquisition is Backpacks agreement to manage bankruptcy claims for former FTX EU customers. Ferrante noted that this step is crucial for restoring trust in the industry, pledging to return customer funds “as fast and as safely as possible.”

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