Backpack Exchange, a fully regulated global cryptocurrency platform, today announced it has completed the acquisition of FTX EU, the European subsidiary of collapsed cryptocurrency exchange FTX. The deal has been approved by the FTX bankruptcy court and Cyprus Securities and Exchange Commission (CySEC), in what is seen as a critical milestone in the expansion of the business in Europe.
FTX EU was licensed earlier under MiFID II – Europe’s finance markets regulation the acquisition brought this license within the control of Backpack. After the acquisition, Backpack will enable the trading of a wide assortment of crypto derivatives-including perpetual futures across Europe.
Regulated crypto derivatives have been scarce on the European Continent as most of the unregulated exchanges have been driven out of Europe due to such regulations.
According to Backpack Exchange CEO Armani Ferrante, “With many international exchanges leaving the European Union, the acquisition underlines our commitment to operating at the highest regulatory standards, and becoming a MiFID II-licensed entity is an important step towards bringing secure and transparent crypto trading to an underserved European market.”
The new crypto products will be launched by Backpack EU, and it will also take the responsibility of fund distribution to FTX EU’s former customers. As part of the acquisition, Backpack has promised to make sure that these customers receive their restitution as fast and securely as possible, thereby helping rebuild trust in the industry after the collapse of FTX.
In addition to this, Backpack EU will integrate seamlessly with the traditional payment systems, including SEPA payments and wire transfers, making it easy for European users to deposit and withdraw funds.
The platform is expected to be live in the first quarter of 2025. Further details regarding user registration and access to funds for former FTX EU customers will be announced soon.
Also Read: Coinbase Acquires BUX’s Cyprus Unit for European Expansion
