• Backpack has acquired FTX EU with a MiFID II authorization.

  • The acquisition plan has been approved by the FTX bankruptcy court and CySEC.

The fully-regulated global cryptocurrency exchange, Backpack Exchange, has announced the purchase of FTX EU—the MiFID II-authorized European subsidiary of the collapsed FTX. This acquisition was examined and authorized by the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC). 

Notably, the FTX EU’s MiFID II licence, obtained under the EU’s Markets in Financial Instruments Directive II, allows Backpack Exchange cover under the very high financial regulations applicable in Europe. The exchange is meant to reinstate the MiFID II authorisation, and the provision of its services in Europe, by the beginning of the year 2023.

Backpack Exchange plans to expand its offerings to include cryptocurrency derivatives, such as perpetual futures contracts for European users. In addition, the exchange will integrate payment systems within the Single Euro Payment Area (SEPA).  

It likely enables instant and low-cost transactions. The SEPA system provides a simple portability of fund transfers between the EU member states. It in turn contributes to the accessibility that is available for citizens and companies.

In addition, the Backpack Exchange, with CEO Armani Ferrante at the helm, operates in more than 150 countries and regions. Serving experienced and novice Web3 traders, with a trading volume of more than $60 billion, the exchange prioritizes security and compliance.

Armani Ferrante stated: 

“As many international exchanges exit the European Union, becoming a MiFID II-licensed entity demonstrates our dedication to meeting the highest regulatory standards and is a significant step to bringing transparent, secure, and regulated crypto trading to an underserved European market.”

The FTX Collapse

When FTX crumbled in November 2022, repercussions reverberated throughout the cryptocurrency sector. This failure exposed that Alameda Research, FTX’s sister company, owned a significant part of its assets in FTT, FTX’s native token. Following this bankruptcy ensued a vacancy in the market, which Backpack Exchange now aims to complete by its purchase of FTX EU.

Founder Sam Bankman-Fried faced fraud and was sentenced to 25 years imprisonment. In January 2024 FTX announced it would not resume operations but instead would liquidate assets to satisfy customers.

A plan approved in October 2024 to reorganize is such that funds will be returned to creditors. Furthermore, the distributions are being initiated no later than 60 days after the plan’s effectiveness date in early January 2025.

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