On 7 January, Backpack publicly announced the acquisition of FTX EU and took responsibility to return customer claims. Backpack EU paid 200,000 euros for possible violations related to the non-functional FTX EU to the Cyprus Securities and Exchange Commission (CySEC) allowing Backpack EU to operate regulated crypto derivatives in Europe. On Monday, Backpack EU started offering derivatives, initially perpetual futures, in Europe, marking a development that addresses a gap left by the absence of licensed derivatives markets in the region following the shutdown of FTX EU’s original exchange operations. Backpack EU is registered with CySEC as Trek Labs Europe.

CySEC Granting the MiFID License to Backpack EU

In November 2022, the financial regulator in Cyprus revoked FTX’s license due to its worldwide collapse. The decision prevented FTX EU from accepting new clients, providing services, or advertising, but allowed it to process transactions to return funds to existing clients. CySEC extended the suspension multiple times – first until March 2023, then September 2023, March 2024, and finally September 2024 as the company worked through the bankruptcy proceedings and regulatory compliance issues.

After purchasing FTX EU and payment for possible violations related to FTX customer claims, CySEC issued the MiFID license to Backpack EU in June 2025, giving them a green light to start operating as a crypto exchange platform in Europe. CySEC officially announced on July 4, 2025, that it had recalled the suspension of the authorization of Cyprus Investment Firm (CIF) of Trek Labs Europe, with the decision made during a CySEC meeting on June 23, 2025.

Backpack EU’s Inception

In 2020, the Swiss-originated company Digital Assets AG (DAAG) was formed. It gained increasing popularity in 2021 for offering free-floating, regulatory-approved security tokens that could be used for tokenized stock trading and remarkably widespread interoperability across the Solana blockchain, offering tokenized financial instruments like Facebook, Google, PayPal, and Tesla. It was purchased by FTX and rebranded to FTX EU in March 2022. After its swift collapse towards the end of the same year, FTX sold the platform back to the original owners in February 2024 for $32.7M facing a crushing loss of $290.3M from the original acquisition price.

In January 2025, Backpack purchased FTX EU. The owner of Backpack (founded in 2022) and Solana developer, Armani Ferrante, who previously created Anchor, an essential Solana developer tool and security protocol that half of all Solana projects are built with, used X to talk about the complex regulatory and operational challenges involved in reviving the defunct exchange, and the endless efforts related to finance, accounting, compliance, customer service, licensing and engineering to secure these approvals.

Regulatory Approvals From Virtual Assets Authorities of Dubai and Japan

To further enhance credibility, Backpack EU successfully acquired the Virtual asset Service Provider (VASP) license from Dubai Virtual Assets Regulatory Authority (VARA) in October 2023 The VARA license allows Backpack to operate as a regulated cryptocurrency exchange in Dubai, positioning the company within VARA’s mandate to promote the Emirate as a regional and international hub for Virtual Assets and related services while boosting Dubai’s competitive edge at the local and international levels.

Additionally, Backpack joined Japan’s Virtual Currency Exchange Association as a Type 2 member in 2024, becoming the first new member admitted after Binance since 2022. This membership status marks Backpack’s further progress towards becoming a Japanese virtual currency trading service provider, as JVCEA is an organization responsible for self-regulation of cryptocurrency exchanges and cryptocurrency-related activities in Japan.

Looking Ahead

Ferrante is determined to put in the hard work required to expand the crypto exchange platform to Japan and the United States of America, leveraging these regulatory approvals as stepping stones for broader international expansion.