FTX Alumni Backpack Exchange has completed the acquisition of FTX EU and is set to launch MiFID II regulated cryptocurrency products.

Backpack, a cryptocurrency exchange founded by the former FTX Executives, has acquired FTX EU, the former European arm of FTX, as part of its expansion into the European market. The acquisition, approved by the FTX Bankruptcy Court and the Cyprus Securities and Exchange Commission, will allow Backpack to offer regulated cryptocurrency derivatives and other financial products to European users, the company said in a statement. Blog announcement.

The new European branch will offer a range of cryptocurrency derivatives, including perpetual futures contracts. This comes as other exchanges exit Europe, leaving a gap in the regulated cryptocurrency derivatives market. Becoming a MiFID II licensed entity “demonstrates our dedication to meeting the highest regulatory standards and is an important step towards bringing transparent, secure and regulated cryptocurrency trading to the underserved European market,” says Backpack CEO Armani Ferrante.

In addition to introducing new products, Backpack EU will distribute FTX bankruptcy claims to FTX EU clients. Backpack EU will also integrate traditional payment systems, allowing users to make payments across Europe via SEPA and bank transfers, the announcement said.

The company plans to reactivate its EU license and launch the Backpack EU in the first quarter of 2025, although no specific time frame has been set for the launch.

The Backpack was founded in 2022 by Armani Ferrante, one of Alameda Research's early employees, and initially launched as a non-containable backpack wallet. In November 2022, during the FTX collapse, Backpack lost $14.5 million, representing 88% of its operating funds. Despite this setback, the team chose to continue construction with minimal funding.