Backpack EU Launches Regulated Crypto Derivatives Platform in Europe
Backpack EU, the entity that acquired the former FTX Europe business, has officially commenced operations with the launch of a regulated perpetual futures trading platform. This move comes after the company successfully resolved a dispute with the Cyprus Securities and Exchange Commission, CySEC, and was granted a critical MiFID II investment firm license.
This development marks a significant re-entry into the European market under a new, fully compliant structure. The acquisition of the MiFID II license is a cornerstone of this launch, as it authorizes Backpack EU to offer a suite of regulated financial instruments and services across the European Union, leveraging the region’s passporting rules.
The platform’s initial offering focuses on perpetual futures contracts for major cryptocurrencies, including Bitcoin and Ethereum. A key differentiator for the new exchange is its commitment to a fully audited proof of reserves and proof of liabilities model. This system is designed to provide traders with verifiable assurance that client assets are held one-to-one and are fully backed, addressing a major concern around transparency and solvency that has plagued the crypto industry.
The launch follows a period of regulatory challenges. Backpack EU’s parent company, Backpack Exchange, had previously acquired FTX EU, which lost its own Cypriot license in the wake of the FTX global collapse. This new approval from CySEC represents a fresh start, signaling that the company has met the stringent regulatory requirements necessary to operate as a trusted financial service provider within the EU.
For users in eligible European countries, the platform offers a regulated on-ramp for trading crypto derivatives, which have historically occupied a gray area in many jurisdictions. By operating under a MiFID II framework, Backpack EU aims to provide a higher standard of consumer protection, including strict adherence to capital requirements, transparent fee structures, and robust client asset segregation protocols.
The company has stated that its mission is to rebuild trust in the cryptocurrency sector by prioritizing regulatory compliance and financial transparency. The integration of real-time auditing through its proof of reserves mechanism is a direct response to the failures seen in previous industry players.
Access to the trading platform will be rolled out gradually across European nations that fall under the purview of the MiFID II regulatory framework. The launch is seen as a strategic move to capture a share of the European market at a time when the regulatory landscape for crypto assets is becoming more defined with the upcoming implementation of the Markets in Crypto-Assets regulation.
Industry observers view this as a positive step towards the maturation of the crypto industry, demonstrating that major trading platforms can and are willing to operate within the confines of traditional financial regulation to ensure user safety and market integrity.
