Backpack Exchange, a prominent player in the global cryptocurrency trading arena, has made a significant leap forward by launching its European division, Backpack EU, in Cyprus. This new venture marks a milestone for the platform as it becomes one of the first fully regulated exchanges in Europe to offer crypto derivatives under the European Union’s MiFID II framework.
A New Dawn for Crypto Derivatives in Europe
Backpack EU’s debut signifies a pivotal moment in the European crypto landscape. With the regulatory backing of MiFID II, the exchange is positioning itself as a leader in offering perpetual futures, a sophisticated financial instrument allowing traders to speculate on the future price of cryptocurrencies without expiration dates. According to Armani Ferrante, the CEO of Backpack, “As far as I’m aware, it’s just going to be us and Kraken” in Europe offering these perpetual futures.
The launch is the culmination of a series of strategic moves by Backpack, notably the acquisition of FTX EU earlier this year. Initially, the FTX bankruptcy estate raised concerns, stating the sale to Backpack was unauthorized. However, these issues were resolved, and by April, Backpack had begun compensating former FTX EU customers, fulfilling its commitment to those affected by the collapse of Sam Bankman-Fried’s crypto empire.
Building Trust Amidst Uncertainty
Ferrante emphasized that the launch is not just about offering new trading products but about rebuilding trust in a market that has faced numerous challenges. “You give trust by doing good things every day over a long period of time. It’s compounded,” Ferrante noted, highlighting the gradual and consistent approach Backpack is taking to reassure its users.
To reinforce trust, Backpack has implemented a robust proof-of-reserves system. Ferrante detailed how the exchange uses zero-knowledge proofs to publish its validators’ attestations daily. “It should be the bar. You can do this every day, there’s no reason why you can’t,” he asserted, suggesting that transparency should be a standard practice in the industry.
A Gateway for Retail and Institutional Traders
With the launch of Backpack EU, the platform is extending its reach to both retail and institutional traders, offering access to over 40 trading pairs with up to 10x leverage. This move is designed to provide a compliant gateway to advanced crypto trading products, catering to the diverse needs of the crypto trading community in Europe.
The exchange’s strategy is not merely about expanding its product offerings but also about setting a precedent for security and transparency in the crypto world. By adopting advanced technologies and adhering to stringent regulatory standards, Backpack aims to foster a secure trading environment.
Global Ambitions and Future Plans
The European launch is just the beginning for Backpack, as the company has its sights set on further expansion. “We’re working on the exact same thing here in Japan,” Ferrante revealed, indicating that Japan might be the next market where Backpack seeks to establish a licensed presence. This expansion strategy underscores Backpack’s ambition to become a global leader in the cryptocurrency trading space.
Since 2024, Backpack has processed over $160 billion in trading volume globally, a testament to its growing influence and the trust it has garnered among traders worldwide. The company’s focus on security, transparency, and compliance is likely to bolster its reputation further as it navigates the complexities of the global crypto market.
The Road Ahead
As Backpack EU embarks on its journey, the exchange is poised to reshape the trading landscape in Europe. By offering regulated crypto derivatives and prioritizing transparency and security, Backpack is setting a new standard for what crypto exchanges can achieve.
The successful resolution of the FTX EU acquisition and the subsequent launch of Backpack EU demonstrate the company’s resilience and commitment to its users. As the crypto market continues to evolve, exchanges like Backpack that prioritize trust and compliance will likely play a crucial role in shaping the future of digital assets.
In a world where trust can be elusive, Backpack’s approach to building credibility and offering innovative trading solutions provides a beacon of hope for the crypto community. As they continue to expand and innovate, it will be interesting to see how Backpack influences the broader industry and what new opportunities they might unlock for traders around the globe.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
