Backpack, a crypto exchange founded by former FTX executives, has recently announced its expansion to 11 US states, including California, Colorado, Indiana, Missouri, Wyoming, and others. This move comes at a time when global crypto regulations are becoming increasingly stringent.
The CEO of Backpack, Armani Ferrante, expressed his vision for the company’s growth in the US market, emphasizing a slow and steady approach. He highlighted the importance of supporting all states eventually, even though it may take years to achieve this goal. The company aims to differentiate itself by offering non-custodial-based trading, a unique feature in the crypto exchange space.
Backpack was co-founded by Can Sun, former general counsel at FTX, and Ferrante, a software developer at Alameda Research. Sun’s involvement in a high-profile trial involving mismanagement of customer funds by a former billionaire sheds light on the team’s experience and expertise in the crypto industry. Additionally, Ferrante’s previous venture, Coral, faced challenges following FTX’s collapse, demonstrating the volatile nature of the crypto market.
The Backpack Exchange platform holds multiple licenses across global jurisdictions, including the United Arab Emirates, Lithuania, Australia, and the United States. Its registration as a Money Services Business in several US states and as a Digital Currency Exchange provider in Australia reflects its compliance with regulatory requirements. The accreditation from the Dubai Virtual Assets Regulatory Authority and registration with the Lithuanian Financial Crime Investigation Service further enhance its credibility as a Virtual Asset Service Provider.
As Backpack expands its operations in the US and other countries, it aims to introduce additional trading features such as derivatives and margin trading. The platform’s recent achievement of $1 billion in daily trading volume indicates a strong market demand for its services. With a focus on regulatory compliance and user protection, Backpack is poised to become a key player in the evolving crypto exchange landscape.