Following a successful funding round and establishment of a VASP license in Dubai, Backpack aims to broaden its services and clientele.
Backpack, a Dubai-based cryptocurrency exchange administered by former FTX and Alameda Research executives, intends to expand into the United Kingdom.
Following a successful funding round, this action represents a significant turning point for the expanding exchange. Thus, let us examine the implications of Backpack’s expansion development on the cryptocurrency industry.
Established by former FTX and Alameda Research personnel, Backpack Exchange has focused on the United Kingdom market, demonstrating its exponential expansion since its inception.
Backpack, an entity recently completing a $17 million financing round, has established itself as a formidable contender within the cryptocurrency exchange industry.
UK Expansion Contributes to Backpack’s Global Presence
The cryptocurrency exchange, established by Armani Ferrante, an experienced member of Alameda Research, and Can Sun, a former employee of FTX, has achieved a current market capitalization of $120 million.
Significantly, the expansion of the cryptocurrency exchange’s services to the United Kingdom has been praised by numerous observers of the cryptocurrency market, as evidenced by the discussions on the X platform.
In the interim, the decision to extend operations into the United Kingdom resulted from Backpack’s effective launch in Dubai and its procurement of a virtual-asset service provider (VASP) license.
The multifaceted strategy of the exchange, which includes a crypto wallet and an NFT collection known as Mad Lads, in addition to crypto trading, has attracted considerable interest within the crypto community.
Despite the obstacles posed by the demise of FTX, Backpack has demonstrated grit and ingenuity in navigating the competitive environment, amassing a global user base of more than 420,000 verified individuals.
Expanding into the United Kingdom is a calculated move by the cryptocurrency exchange to penetrate untapped markets and broaden its clientele. Following the downfall of FTX, former executives have capitalized on the situation to establish a distinct presence on cryptocurrency exchanges.
Simply put, Backpack represents a new generation of exchanges establishing elevated benchmarks in the sector by addressing the ever-changing demands of cryptocurrency investors and merchants.
In the wake of FTX’s demise, the introduction of Backpack in the United Kingdom is consistent with a larger pattern of emerging exchanges entering the sector.
Backpack is positioned to make a significant transition in digital asset exchanges due to its inventive solutions and user-centric methodology.
The news also coincides with the United Kingdom’s growing emphasis on digital assets. In providing further clarification, it was recently declared by the London Stock Exchange (LSE) that it will grant petitions for Ethereum and Bitcoin Exchange Traded Notes (ETNs).
Significantly, this action corresponds with the increasing attention from institutions and follows the FCA’s recent position on crypto ETNs.
