FTX EU Sold to Backpack Exchange, Regulated Crypto Derivatives Plans Push Across Europe

FTX EU, the European branch of Sam Bankman Fried's now-bankrupt cryptocurrency trading empire, has been sold to Backpack Exchange, a crypto trading company founded by former Alameda Research and FTX employees.

FTX EU, which had a MiFID II license under the Cyprus Securities and Exchange Commission (CySEC), spent Backpack $32.7 million, the exchange said.

Backpack's new European arm will offer a full suite of crypto products across the EU, starting by taking advantage of its position as the only regulated perpetual futures provider across Europe, according to Armani Ferrante , CEO of Backpack Exchange.

A number of crypto trading companies have applied for a MiFID licence, which will also allow companies to offer crypto-asset services under the new Markets in Crypto Assets (MiCA) regulation, once notification has been made to the appropriate national authority.

Currently, Bitstamp and Coinbase have received their MiFID II licenses, and D2X, based in the Netherlands, has also received a license and plans to deliver USD-denominated futures and options early this year. Other new entrants also aim to shift crypto derivatives market dominance away from the likes of Panama-based centralized exchange Deribit.

Backpack's Ferrante said the company's MiCA announcement has been submitted and is expected to go live in the first quarter of 2025.

“Although a few companies have been able to obtain approval for a limited form of derivatives licence, we are not aware of any players that currently offer perpetuities and are resident in the EU, giving their – into Coinbase and Bitstamp,” Ferrante said via email. . “As soon as we return FTX EU customers' money, we are excited to start serving the perpetual income product as a priority.”

A whole suite of products is being worked on, Ferrante said, although some of these may not be rolled out in Q1.

Backpack, whose founders contributed to the Solana ecosystem and established a successful wallet and NFT business, raised $17 million in funding last year.