In a significant development within the cryptocurrency trading landscape, FTX EU, the European branch of the now-defunct trading empire led by Sam Bankman-Fried, has been successfully acquired by Backpack Exchange. This crypto trading firm, established by former employees of Alameda Research and FTX, has positioned itself to reshape the European market.
The acquisition, which cost Backpack approximately $32.7 million, along with FTX EU’s existing MiFID II-license granted by the Cyprus Securities and Exchange Commission (CySEC), equips Backpack with a solid foundation to offer a comprehensive range of crypto derivatives across the EU. Armani Ferrante, CEO of Backpack Exchange, expressed enthusiasm about the acquisition and highlighted their unique advantage as the only regulated perpetual futures provider in Europe.
As the regulatory landscape evolves, an increasing number of crypto trading companies are pursuing MiFID licenses, which allow them to provide crypto-asset services under the new Markets in Crypto Assets (MiCA) regime. Notable firms like Bitstamp and Coinbase have already secured their MiFID II licenses, while the Netherlands-based exchange D2X is set to launch USD-denominated futures and options shortly. These developments signal a shift in the competitive dynamics of the crypto derivatives market, traditionally dominated by centralized exchanges like Panama-based Deribit.
Ferrante also noted that Backpack has submitted its MiCA notification and anticipates going live by the first quarter of 2025. He remarked, “Even though a few firms have been able to acquire approval for a limited form of a derivatives license, we’re not aware of any players that currently offer perpetuals and are live in the EU, including Coinbase and Bitstamp.” This statement underscores Backpack’s ambition to fill a notable gap in the market.
While Backpack is excited about serving FTX EU’s former customers and looks to prioritize the regulated perpetual futures product, Ferrante indicated that a broader suite of products is under development. However, some of these offerings may take longer to launch than anticipated.
Founded by individuals who have made significant contributions to the Solana ecosystem, Backpack Exchange has already made strides in the crypto space with a successful wallet and NFT business. The firm raised $17 million in funding last year, demonstrating strong investor confidence in their vision and capabilities.
In summary, the acquisition of FTX EU by Backpack Exchange marks a pivotal moment for regulated cryptocurrency trading in Europe. As the landscape becomes increasingly competitive, Backpack is poised to leverage its unique position and expertise to deliver innovative trading products to a growing market of crypto enthusiasts and investors.
