Cryptocurrency exchange Backpack, founded by former FTX executives, has recently announced its expansion to 11 US states amidst increasing global regulations. The company’s CEO, Armani Ferrante, expressed determination to establish Backpack’s presence in the US gradually and diligently.
In the announcement made on social media, Backpack revealed its availability to residents in states such as California, Colorado, Indiana, Missouri, and Wyoming. Ferrante emphasized the importance of taking the time to bring the exchange to more states over the coming years, ensuring that the process is executed correctly.
Backpack Exchange, currently in its beta phase, offers spot trading services and has plans to venture into derivatives and margin trading. The platform aims to set itself apart from traditional exchanges by providing non-custodial trading options for its users. Notably, the exchange reported reaching $1 billion in daily trading volume on February 18.
The exchange was co-founded by Can Sun, a former general counsel at FTX, and Armani Ferrante, previously a software developer at Alameda Research. Sun’s involvement in Sam Bankman-Fried’s trial shed light on the misuse of customers’ funds by the former billionaire. On the other hand, Ferrante’s previous company, Coral, experienced a significant loss of $14.5 million following FTX’s sudden collapse. FTX Venture had recently led a $20 million funding round for Coral prior to the collapse.
Backpack Exchange holds multiple licenses across various jurisdictions worldwide, including the United Arab Emirates, Lithuania, Australia, and the United States. In the US, the exchange is registered as a Money Services Business in numerous states. It is also recognized by the Australian Transaction Reports and Analysis Centre as a Digital Currency Exchange provider. Moreover, Backpack holds accreditation from the Dubai Virtual Assets Regulatory Authority as a Virtual Asset Service Provider in the UAE and is registered as a Virtual Currency Exchange Operator in Lithuania.
Backpack Exchange’s expansion to 11 US states signifies its commitment to complying with evolving regulatory frameworks while offering innovative trading solutions to its users. The exchange’s focus on non-custodial trading and diversification into different financial products positions it uniquely in the competitive crypto market. As Backpack continues to establish its presence globally, it will be interesting to see how it navigates the complexities of the crypto industry and fosters trust among its growing user base.