Crypto exchange Backpack, founded by former FTX executives, has recently announced its expansion into 11 US states, including California, Colorado, Indiana, Missouri, and Wyoming. This move comes at a time when global crypto regulations are tightening, leading companies to seek new opportunities and markets.
CEO Armani Ferrante has expressed the company’s commitment to establishing a strong presence in the United States. In a statement, he mentioned that the journey to bring Backpack Exchange into the US will be slow, steady, and challenging. Despite the challenges, the company is determined to make this expansion worthwhile for its users.
Backpack Exchange, currently in its beta phase, offers spot trading activities but has plans to expand into derivatives and margin trading. It aims to differentiate itself from traditional crypto exchanges by providing a non-custodial-based trading experience. The platform reported a significant daily trading volume of $1 billion on Feb. 18, indicating its growing presence in the market.
The exchange was co-founded by Can Sun, former general counsel at FTX, and Armani Ferrante, who previously worked as a software developer at Alameda Research. Sun played a crucial role as a witness in a trial involving FTX’s former billionaire, highlighting his commitment to transparency and ethics in the industry. Ferrante’s background in crypto infrastructure company Coral also brings valuable experience to Backpack Exchange.
Backpack Exchange holds multiple licenses across various jurisdictions, including the United Arab Emirates, Lithuania, Australia, and the United States. In the US, it is registered as a Money Services Business (MSB) in several states according to the Financial Crimes Enforcement Network. Additionally, it is recognized as a Digital Currency Exchange (DCE) provider by the Australian Transaction Reports and Analysis Centre and holds accreditation from the Dubai Virtual Assets Regulatory Authority.
Backpack Exchange’s expansion into the US market represents a significant milestone for the company as it navigates the evolving landscape of crypto regulations. With a commitment to compliance, transparency, and innovation, the exchange is poised to make a lasting impact on the industry.