FTX EU, once part of the now-collapsed FTX empire, has been acquired by Backpack Exchange in a $32.7 million deal. But this is more than just a change in ownership—it’s a bold move with the potential to shake up Europe’s crypto market.
With European regulations becoming more crypto-friendly and projections suggesting 218.6 million crypto users by 2025, this acquisition comes at the perfect time.
What does this mean for Europe’s crypto future, and can Backpack rise to the challenge of filling the void left by FTX?
FTX EU played a crucial role in Sam Bankman-Fried’s trading empire, holding a MiFID II license from the Cyprus Securities and Exchange Commission (CySEC). This license allowed the company to operate across the European Union and made it an attractive asset for Backpack Exchange.
Backpack, founded by former employees of FTX and Alameda Research, plans to use this license to establish itself as a leader in regulated crypto derivatives in Europe.
Big Plans Under Europe’s New Rules
Backpack CEO Armani Ferrante shared that the company has already filed a notification under Europe’s Markets in Crypto Assets (MiCA) framework. If approved, Backpack aims to launch in early 2025. The company plans to offer a wide range of crypto derivatives, with a focus on becoming the first regulated provider of perpetual futures in the EU.
Ferrante highlighted that while firms like coinbase
Before rolling out new services, Backpack is focusing on restoring funds to FTX EU’s existing customers. Ferrante emphasized that returning these funds is the company’s top priority. Once resolved, the exchange will gradually introduce its products, with some features potentially launching later in the year.
Backpack is already making a name for itself in the crypto world. The team has contributed significantly to the Solana ecosystem and achieved success with NFT projects. Last year, they raised $17 million in funding. With the FTX EU acquisition, they’re now stepping into the competitive European market.
Europe’s crypto industry is buzzing, with companies like D2X also competing for a share of the derivatives market. However, Backpack’s focus on regulation and its unique offering of perpetual futures give it an edge.
As the crypto world demands more stability and trust, Backpack’s strategic acquisition could mark the beginning of a new chapter for regulated trading in Europe.
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