Backpack Exchange introduces regulated perpetual futures trading in Europe, operating under EU's MiFID II license following its acquisition of FTX EU.

Executive Summary

Backpack Exchange has launched a regulated perpetuals exchange in Europe, operating out of Cyprus under the EU’s MiFID II license, after acquiring FTX EU. This move positions Backpack as one of the first regulated venues in Europe for crypto derivatives, offering perpetual futures.

The Event in Detail

Backpack EU, the European division of Backpack Exchange, is now live, offering European users access to regulated perpetual futures trading. The exchange operates under a MiFID II license granted by the Cyprus Securities and Exchange Commission (CySEC), license number 273/15. This launch follows Backpack's acquisition of FTX EU in early 2025 and their subsequent efforts to resolve customer claims.

Backpack EU provides access to over 40 trading pairs with up to 10x leverage. CEO of Backpack, Armani Ferrante, stated, > "After fulfilling our promise to refund former FTX EU customers, we commence our journey to provide one of the first fully regulated crypto-derivatives platforms in Europe, starting with perpetual futures."

Market Implications

Backpack's launch occurs during a period of increasing regulatory clarity in the crypto space. Other firms like One Trading have also launched regulated perpetual futures, indicating a trend towards regulated crypto derivatives trading in Europe. Gemini, backed by the Winklevoss twins, has also secured MiCA and MiFID II licenses, introducing tailored products for European retail and institutional investors. This move may lead to increased adoption of regulated crypto derivatives trading in Europe and could encourage other exchanges to pursue regulatory compliance.

Expert Commentary

Armani Ferrante noted that > "global regulators are providing clearer compliance frameworks, institutions are embracing crypto, and yet traders lack the regulated venues to meet the moment. Today, that changes."

Broader Context

Backpack Exchange emphasizes transparency through its Proof of Reserves (PoR) system, which uses zero-knowledge proofs to demonstrate that assets are equal to or greater than customer liabilities. This system is continuously monitored by their security partner, OtterSec, with public proofs generated daily. The move to provide regulated crypto derivatives comes as unregulated offshore exchanges have been forced to wind down their European operations.