FTX EU, the European arm of Sam Bankman Fried’s now-bankrupt cryptocurrency trading empire, has been sold to Backpack Exchange, a cryptocurrency trading company founded by former employees of Alameda Research and FTX.
FTX EU, which had a MiFID II license under the Cyprus Securities and Exchange Commission (CySEC), cost Backpack $32.7 million, the exchange said.
Backpack’s new European arm will offer a full suite of crypto derivatives across the EU, starting by capitalizing on its position as the only regulated perpetual futures provider across Europe, according to Armani Ferrante, CEO of Backpack Exchange.
Several cryptocurrency trading companies have applied for a MiFID license, which allows them to also offer cryptoasset services under the new European Cryptoasset Markets (MiCA) regime, once a notification has been sent to the relevant national competent authority.
Currently, Bitstamp and Coinbase have received their MiFID II licenses, while Netherlands-based D2X has also received a license and plans to offer dollar-denominated futures and options early this year. Other new entrants also aim to shift dominance of the crypto derivatives market away from companies like Deribit, a centralized exchange based in Panama.
Backpack’s Ferrante said the company’s MiCA notification has been submitted and he expects it to go live in the first quarter of 2025.
“Although some companies have been able to obtain approval for a limited form of derivatives license, we are not aware of any players that currently offer perpetual securities and are live in the EU, including Coinbase and Bitstamp,” Ferrante said via email. . “Once we return FTX EU customer funds, we are excited to begin offering a regulated perpetual futures product as a priority.”
Ferrante added that a full suite of products is in the works, although some of them may not be implemented in the first quarter.
Backpack, whose founders contributed to the Solana ecosystem and established a successful wallet and NFT business, raised $17 million in funding last year.
