tl;dr
Backpack Exchange has launched its European division, Backpack EU, as one of the first fully regulated crypto derivatives platforms in Europe, offering perpetual futures under MiFID II. The exchange, based in Cyprus, aims to rebuild trust through compliance and transparency, including a proof-of-r...
**Backpack Exchange Launches Backpack EU: A Trailblazer in Regulated Crypto Derivatives**
Backpack Exchange, the global cryptocurrency trading platform, has officially launched its European division, Backpack EU, positioning itself as one of the first fully regulated venues in Europe to offer crypto derivatives—starting with perpetual futures. Operating out of Cyprus and licensed under the European Union’s MiFID II framework, the exchange is making waves in a market still grappling with the aftermath of past crypto scandals.
**A New Era for Crypto Derivatives in Europe**
Backpack EU’s debut marks a significant milestone. “As far as I’m aware, it’s just going to be us and Kraken” in Europe offering perpetual futures, said Armani Ferrante, Backpack’s CEO, in an interview with CoinDesk. This distinction isn’t just about competition—it’s about trust. The exchange is aiming to provide a compliant gateway for both retail and institutional traders, offering access to over 40 trading pairs with up to 10x leverage.
But the journey to this point hasn’t been without hurdles. Backpack’s acquisition of FTX EU earlier this year brought its own set of challenges. In January, the FTX bankruptcy estate initially claimed the sale of FTX EU to Backpack wasn’t authorized. However, the issue has since been resolved, and in April, Backpack began distributing funds to former FTX EU customers, honoring its pledge to compensate users affected by the collapse of Sam Bankman-Fried’s empire.
**Rebuilding Trust, One Step at a Time**
Ferrante emphasized that trust is the cornerstone of Backpack’s strategy. “You give trust by doing good things every day over a long period of time. It’s compounded,” he said. “It takes time to build trust and a single day to lose it.” This philosophy is reflected in Backpack’s proof-of-reserves system, which publishes validators’ attestations daily using zero-knowledge proofs. “It should be the bar,” Ferrante added. “You can do this every day—there’s no reason why you can’t.”
Since 2024, Backpack has processed over $160 billion in trading volume globally, a testament to its growing credibility and the market’s appetite for regulated platforms.
**Looking Ahead: Expanding the Horizon**
Backpack’s ambitions don’t stop at Europe. “We’re working on the exact same thing here in Japan,” Ferrante said, hinting at future expansion plans. Licensing in Japan could be the next frontier for the exchange, signaling its intent to become a global leader in compliant crypto trading.
As the crypto landscape continues to evolve, Backpack EU’s launch underscores a broader trend: the industry’s push toward regulation and transparency. For traders, this means more options—but also higher expectations. How will Backpack’s approach shape the future of crypto derivatives in Europe? And what lessons can other exchanges learn from its journey? The answers may lie in the daily choices it makes to earn—and keep—trust.