FTX EU Sold to Backpack Exchange, Plans Regulated Crypto Derivatives Push Across Europe

FTX EU Sold to Backpack Exchange, Plans Regulated Crypto Derivatives Push Across Europe

Backpack Exchange Acquires FTX Europe for $32.7 Million, Securing Regulatory Edge in Crypto Derivatives

Backpack Exchange, a crypto trading firm founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of the now-bankrupt FTX empire, for $32.7 million. FTX EU held a coveted MiFID II license under the Cyprus Securities and Exchange Commission (CySEC), granting Backpack a significant regulatory foothold in the European crypto market.

The acquisition positions Backpack as the only regulated perpetual futures provider across Europe, according to CEO Armani Ferrante. The company has already submitted its Markets in Crypto Assets (MiCA) notification, paving the way for it to go live in the first quarter of 2025.

A New Leader in Regulated Crypto Derivatives

Backpack plans to leverage FTX EU’s infrastructure to offer a comprehensive range of crypto derivatives throughout the EU. Ferrante highlighted that, unlike other licensed players like Coinbase, Bitstamp, and Netherlands-based D2X, none currently provide regulated perpetual futures.

“Once we return FTX EU customers’ funds, we’re excited to begin serving a regulated perpetual futures product as a priority,” Ferrante stated.

While perpetual futures will be the initial focus, Ferrante hinted at a broader range of products under development, some of which may roll out later in 2025.

Competition in the Evolving EU Crypto Market

The acquisition comes as the EU’s crypto landscape evolves under the new MiCA regime, which standardizes regulatory requirements for crypto-asset services. Several firms, including Coinbase, Bitstamp, and D2X, have secured MiFID II licenses, but Backpack’s acquisition gives it a unique first-mover advantage in regulated perpetual futures trading.

Backpack’s entry could challenge the dominance of existing players like Deribit, a Panama-based exchange known for its unregulated derivatives market.

A Strong Foundation and Vision

Backpack’s founders, known for their contributions to the Solana ecosystem and successful ventures in wallets and NFTs, raised $17 million in funding last year. The firm’s strong technical background and regulatory positioning give it an edge as it prepares to serve the EU market.

Looking Ahead

The acquisition of FTX EU marks a significant milestone for Backpack as it seeks to reshape the European crypto derivatives market. With regulatory approvals in place and a clear focus on delivering innovative products, the company is well-positioned to capitalize on the growing demand for regulated crypto trading solutions in the EU.