The cryptocurrency exchange Backpack has announced the successful acquisition of FTX’s former European division, which holds a MiFID II license. The deal has been approved by the court overseeing FTX’s bankruptcy proceedings and the Cyprus Securities and Exchange Commission (CySEC), following an extensive eight-month review process.
A Milestone in Global Expansion
The acquisition marks a significant milestone for Backpack as it expands its footprint in the European market. The platform aims to provide regulated and reliable trading solutions across the EU. The newly acquired European division will offer a full range of crypto derivatives, including perpetual futures, to customers across the European Union.
The Advantage of a Regulated License
The European market for crypto derivatives remains underdeveloped due to the lack of regulated offerings. Many unregulated offshore platforms have been forced to cease operations in the region due to licensing issues. With the MiFID II license obtained through this acquisition, Backpack aligns itself with traditional financial entities like Goldman Sachs in the EU. This license enables the company to operate with financial assets beyond cryptocurrencies.
Addressing FTX Bankruptcy Claims
As part of the acquisition, Backpack EU assumes responsibility for distributing claims to FTX EU customers previously approved by the court in the FTX bankruptcy case. This step underscores the company’s commitment to transparency and accountability in resolving customer concerns.
Market Opportunities Ahead
The acquisition of FTX’s European division positions Backpack as one of the few regulated exchanges in the EU offering access to crypto derivatives. This move strengthens the company’s standing in the global market and builds customer trust in regulated cryptocurrency platforms.