
Backpack Exchange, a regulated crypto exchange and wallet, has completed the acquisition of FTX EU.
The exchange announced it had acquired the MiFID II-licensed European arm of defunct cryptocurrency exchange FTX on Tuesday, Jan. 7.
While the exchange’s new EU arm aims at offering crypto derivatives across the European Union, one of its first goals is also to make FTX EU customers whole.
Backpack completes FTX EU acquisition
According to a press release, the deal proceeded after receiving a regulatory nod from the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).
Backpack says the acquisition marks a key milestone in the company’s quest to penetrate the global crypto market.
It will use the expansion to bring its suite of cryptocurrency services and products to customers in Europe, a gap that currently exists as several providers exit amid the EU’s Markets in Crypto-Assets (MiCA) rule implementation.
In this case, the exchange’s next steps include bringing regulated crypto derivatives, including perpetual futures trading to EU users.
Backpack eyes launch in the first quarter of 2025.
Backpack has acquired FTX EU and its MiFID II License.
Our first priority is to return all customer EURO funds on behalf of the FTX estate, followed by rolling out a full suite of spot, margin, and futures trading products.
Crypto perps trading is coming back to Europe 🇪🇺
Commenting on the deal and what it means for the exchange, Backpack CEO Armani Ferrante said:
“As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market.”
Among crypto platforms with licenses to offer products under the MiFID II license are Bitstamp and Coinbase.
But most of the crypto derivatives market is dominated by offshore centralized exchanges, including leading provider Deribit. Backpack looks to snatch EU users from across these rivals.
FTX EU customer claims
As part of its priority, Backpack has plans to return all Euro funds to the FTX EU customers.
This is a responsibility the exchange is looking to undertake following the recently court-approved distribution plan.
Backpack CEO emphasized on the importance of customer restitution, terming it a major factor in the desire to rebuild customer trust and confidence.
The exchange will look to complete the reimbursements to FTX EU customers “as fast and as safely as possible,” Ferrante noted.
The collapsed crypto exchange FTX, which imploded in 2022, saw the native token FTX Token (FTT) nosedive to near zero.
However, various developments, including the distribution of customer claims have helped bulls.
FTT traded at $3.44, with the token’s price up 9% in the past 24 hours.
The past year has FTX Token up more than 27%. However, the current price remains nearly 95% down since the all-time above $85 reached in 2021.
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