The company plans to offer regulated crypto derivatives products in this market by purchasing FTX EU, the European arm of FTX. This acquisition was approved by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC).

The new development is part of Backpack’s growth strategy, which aims to gain the trust of investors by offering crypto services that comply with regulations in Europe.

With the acquisition of FTX EU, Backpack Exchange plans to offer various crypto derivative products, especially perpetual futures, to its users in Europe. The company, which has a MiFID II license, aims to eliminate Europe’s deficiencies in accessing regulated derivative markets.

Armani Ferrante, CEO of the company, said: “Having a MiFID II license shows our determination to comply with the regulations. “This is an important step towards delivering a safe, transparent and regulated crypto trading experience to underserved markets in Europe,” he said.

Backpack EU’s scope of services is not limited to derivative products only. The company has also undertaken the responsibility of managing the demands of FTX EU customers affected by the FTX bankruptcy process.

In this context, it will distribute bankruptcy requests in order to relieve the grievances of users. The company will also integrate traditional payment systems such as SEPA and bank transfer, allowing users to make payments more easily across Europe.

With this acquisition, Backpack aims to reactivate its European license and launch Backpack EU in the first quarter of 2025. Although a clear date for the launch has not been announced, the company’s preparations for this process continue at full speed.

Backpack was founded in 2022 by Armani Ferrante, a former employee of Alameda Research. The company initially launched with Backpack Wallet, a non-custodial wallet solution through which users can control their crypto assets.

However, during the FTX collapse in November 2022, Backpack lost $14.5 million, equivalent to 88% of its operational funds. Despite this serious financial loss, the company continued its operations with minimal financing and has become an international crypto exchange today.

Despite the challenges they faced, Ferrante and his team continued to develop their project. Today, Backpack has established itself in the global market by offering innovative solutions for both retail and corporate users.

Volatility in the crypto market has always been a big risk for investors. In the European market, the need for regulated derivative products is increasing.

However, the recent withdrawal of many major stock exchanges from the European market has provided an opportunity for new players to meet the demands of investors in this field. Backpack Exchange aims to fill this gap and offer European users both innovative and regulated products.

Having a MiFID II license shows that the company fully complies with the regulations in the European Union. This could help Backpack appeal to a wider user base by increasing its credibility in the European market.

Backpack Exchange’s acquisition of FTX EU not only supports the company’s growth ambitions, but also aims to provide a safe and regulated platform to crypto users in Europe. In addition to derivative products, the company aims to make a difference with traditional payment infrastructures that will facilitate users’ daily transactions.

With the launch of Backpack EU in the first quarter of 2025, the company’s effectiveness in the European market and users’ interest in this new platform will become clear. This strategic step can strengthen Backpack Exchange’s position not only in Europe but also in the global crypto market.