According to Foresight News, The Block reported that Backpack successfully acquired the original FTX European business, which holds the EU's new regulations (Markets in Financial Instruments Directive II) (MiFID II) license today. The acquisition has been approved by the FTX Bankruptcy Court and the Cyprus Securities and Exchange Commission (CySEC), and Backpack EU is expected to be officially launched in the first quarter of 2025. Through this acquisition, Backpack EU will provide various crypto spot and derivative services including perpetual contracts within the EU. Currently, affected by the entry into force of the EU (Markets in Crypto Assets Regulation) (MiCA) and stricter legal enforcement, many unlicensed offshore trading platforms have been forced to close their derivatives businesses in Europe. Backpack has become the only operating entity in the EU that holds crypto derivative services, including perpetual contract qualifications. As a developed economy, the trading volume in the EU region can account for 20-30% of the global business volume of various cryptocurrency exchanges. The license obtained by Backpack EU is similar to the licenses held by traditional financial investment banks in Europe. In the future, it will be able to provide more traditional financial services in Europe, including stocks and bonds. As part of the acquisition, Backpack EU will also assume the responsibility of distributing FTX bankruptcy claims to former FTX EU users.
According to the earlier FTX bankruptcy documents, FTX EU has at least 110,000 retained users. In addition to providing compliant products and services, Backpack EU will also achieve seamless integration with traditional payment systems, including instant, low-cost Single Euro Payments Area (SEPA) payments and bank transfer services in major currencies in the region.
