Backpack Exchange Acquires FTX EU to Enter European Market

Backpack Exchange, a global cryptocurrency exchange, has finalized the acquisition of FTX EU, the former European branch of FTX. This move, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), positions Backpack as a leading regulated crypto exchange in the European market.

Bringing Regulated Crypto Derivatives to Europe

The acquisition allows Backpack Exchange to introduce a comprehensive suite of crypto derivatives across the European Union, including perpetual futures. Currently, no regulated options exist in this market, as unlicensed offshore exchanges have been forced to cease operations in Europe. Backpack EU plans to go live in the first quarter of 2025, filling this gap with secure and compliant trading solutions.

Backpack’s CEO, Armani Ferrante, emphasized the importance of regulation in the evolving crypto landscape:

“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.”

In addition to launching its trading platform, Backpack EU will oversee the distribution of approved FTX bankruptcy claims to FTX EU customers. Ferrante highlighted this as a key step in rebuilding trust within the crypto industry:

“Customer restitution is a crucial step to rebuild trust and confidence in the industry, and Backpack is committed to returning FTX EU customers’ funds as fast and as safely as possible.”

Seamless Integration with Traditional Payment Systems

Backpack EU will also integrate with traditional financial systems, offering instant and low-cost payment options. Customers will have access to Single Euro Payments Area (SEPA) transfers and wire transfers in major currencies, ensuring a smooth connection between fiat and crypto trading.

The reactivation of FTX EU’s license is currently underway, with Backpack EU targeting a launch in early 2025. Details about how new users can sign up and how FTX EU customers can access their assets will be announced in the coming months.

By securing this acquisition, Backpack Exchange positions itself to meet the growing demand for regulated crypto trading in Europe while addressing the lingering issues from FTX EU’s collapse.