Backpack Exchange, a crypto trading company founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of Sam Bankman Fried’s now-bankrupt cryptocurrency trading empire, for $32.7 million.
FTX EU, which held a Markets in Financial Instruments Directive (MiFID II) license under the Cyprus Securities and Exchange Commission (CySEC), will now be used by Backpack to offer a full suite of crypto derivatives throughout the EU.
According to Backpack CEO Armani Ferrante, the company will capitalize on its position as the only regulated perpetual futures provider across Europe.
Several crypto trading firms have applied for a MiFID license, which will also allow them to offer crypto-asset services under Europe’s new Markets in Crypto Assets (MiCA) regime once they notify the relevant competent national authority.
Currently, Bitstamp and Coinbase hold MiFID II licenses, while D2X, a Netherlands-based firm, has also been granted a license and plans to launch USD-denominated futures and options early this year. Other new entrants are also aiming to shift the crypto derivatives market dominance away from the likes of Panama-based centralized exchange Deribit.
Backpack’s Ferrante said the firm’s MiCA notification has been submitted and that he expects to go live in the first quarter of 2025.
“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,” Ferrante told Blockworks via email. “Once we return FTX EU customers' funds, we’re excited to begin serving a regulated perpetual futures product as a priority.”
A full suite of products is being worked on, Ferrante added, though some of these may not roll out in Q1.
Backpack, whose founders have contributed to the Solana ecosystem and established a successful wallet and NFT business, raised $17 million in funding last year.
