• Backpack Exchange has acquired FTX EU for $32.7 million, aiming to become the first regulated provider of perpetual futures across Europe.
• The deal strengthens Backpack’s position in the competitive EU crypto derivatives market as it prepares for a Q1 2025 launch under MiCA regulations.

Backpack Exchange, a cryptocurrency trading company founded by former Alameda Research and FTX employees, has acquired FTX EU, the European arm of the now-bankrupt FTX trading empire, for $32.7 million. FTX EU previously held a MiFID II license under the Cyprus Securities and Exchange Commission (CySEC), a critical asset for operating within Europe’s regulated crypto market.

The acquisition positions Backpack Exchange to offer a full suite of cryptocurrency derivatives across the European Union, starting with its status as the region’s only regulated perpetual futures provider.

Armani Ferrante, CEO of Backpack Exchange, confirmed that the firm has submitted its Markets in Crypto Assets (MiCA) notification and plans to go live in Q1 2025.

“While some firms have gained limited derivatives licenses, none currently offer perpetual futures products within the EU, including Coinbase and Bitstamp,” Ferrante stated.

He emphasized that Backpack’s immediate priority will be returning funds to FTX EU customers and launching regulated perpetual futures.

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The European crypto derivatives market is becoming increasingly competitive. Firms like Coinbase and Bitstamp have already secured MiFID II licenses, while D2X, a Dutch-based platform, is preparing to introduce USD-denominated futures and options. Backpack’s acquisition and its focus on perpetual futures are seen as efforts to challenge the dominance of Deribit, a Panama-based exchange that leads the crypto derivatives space.

Beyond derivatives, Backpack is also working on a broader product portfolio, though some offerings may not be available until later in 2025. The company’s roots in the Solana ecosystem, coupled with its experience in wallets and NFTs, underscore its ambition to expand its footprint in the crypto sector.

Backpack previously raised $17 million in funding, signaling investor confidence in its ability to navigate the evolving regulatory and market landscape. The acquisition of FTX EU marks a significant step in its quest to establish itself as a major player in the European crypto market.

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by Harshajit Sarmah.