Key Insights:
- Backpack will be the only regulated provider of perpetual futures across Europe, as stated by CEO Armani Ferrante.
- The MiCA notification from Backpack has been submitted, with expectations to commence operations in the first quarter of 2025.
FTX EU, the European entity of Sam Bankman-Fried’s now-defunct cryptocurrency exchange, was sold to Backpack Exchange for $32.7 million. This division held a MiFID II license under Cyprus's Securities and Exchange Commission (CySEC).
Backpack plans to launch a comprehensive range of crypto derivatives across the EU, leveraging its unique status as the sole regulated provider of perpetual futures on the continent, according to CEO Armani Ferrante.
Numerous crypto trading firms have begun applying for MiFID licenses, enabling them to offer crypto-asset services under the new Markets in Crypto Assets (MiCA) regulation once notifications are submitted to the appropriate national authorities.
Currently, Bitstamp and Coinbase have been granted MiFID II licenses, while D2X, based in the Netherlands, has also been issued a license and intends to offer USD-denominated futures and options later this year. Other emerging players aim to capture a larger market share in crypto derivatives from established entities like Panama-based Deribit.
Ferrante indicated that Backpack has submitted its MiCA notification and anticipates being operational by the first quarter of 2025. "While some companies have received limited derivatives licenses, we have not seen any firm offering perpetuals currently active in the EU, including Coinbase and Bitstamp," Ferrante shared via email. "Once we return customer funds from FTX EU, we look forward to rolling out a regulated perpetual futures product as our priority."
A complete range of products is in development, although some may not launch in the upcoming quarter.
Backpack, formed by founders with ties to the Solana ecosystem and a successful NFT and wallet venture, raised $17 million in funding last year.
