Backpack EU Unlocks European Crypto Derivatives Market with Groundbreaking CySEC-Approved Platform

The European cryptocurrency landscape is undergoing a significant transformation. Recently, Backpack EU officially commenced its operations, marking a pivotal moment for digital asset trading. This new entity, which acquired the former FTX EU, introduces a fully regulated perpetual futures platform to the European market. Its launch follows a crucial settlement with the Cyprus Securities and Exchange Commission (CySEC) and the successful securing of a MiFID II license. This development signals a strong move towards increased compliance and investor protection within the crypto sector. Consequently, it offers a fresh opportunity for traders seeking secure and regulated avenues for derivatives trading.

Backpack EU: A New Era for Regulated Crypto Derivatives

Backpack EU, operating under the legal name Trek Labs Europe, announced its official launch on Monday. This development arrives after a period of intense regulatory engagement. The company now offers a regulated crypto derivatives platform, specifically focusing on perpetual futures. This move is particularly significant given the company’s history with FTX EU, the former European arm of the now-defunct FTX exchange. Armani Ferrante, CEO of Backpack, emphasized the company’s commitment. “After fulfilling our promise to refund former FTX EU customers, we commence our journey to provide one of the first fully regulated crypto derivatives platforms in Europe, starting with perpetual futures,” Ferrante stated.

The journey to this launch began earlier in 2025. Backpack acquired FTX EU during this period. Subsequently, Backpack took on the responsibility for distributing FTX EU customer claims, starting in May 2025. This proactive approach to resolving past issues has helped build a foundation of trust. Therefore, the launch represents not just a new platform, but also a renewed commitment to ethical operations. The firm aims to set a high standard for regulatory adherence and customer care in the volatile crypto market. Moreover, this strategic entry into the European market underscores a broader industry trend towards institutionalization and compliance.

Navigating the Regulatory Landscape: CySEC Approval and MiFID II

A cornerstone of Backpack EU’s operational framework is its robust regulatory standing. The company operates under a Markets in Financial Instruments Directive (MiFID II) license. This authorization was granted by the Cyprus Securities and Exchange Commission (CySEC). MiFID II is a comprehensive piece of EU legislation. It governs investment services and activities across the European Economic Area. Consequently, holding such a license signifies a high level of regulatory compliance and investor protection. This framework ensures transparency, market integrity, and robust client safeguarding measures.

The reissuance of the MiFID II license to Trek Labs Europe occurred in June 2025. This followed a significant settlement with the Cypriot regulator. Backpack EU paid a total of 200,000 euros (approximately $235,000). This payment addressed “possible violations” of regulations linked to the former FTX operations. The CySEC had initially suspended FTX EU’s Cyprus investment firm (CIF) license in November 2022. This suspension came after the catastrophic collapse of its global parent, FTX. Therefore, this recent CySEC approval and the subsequent licensing mark a clear break from the past. It also establishes a new benchmark for compliant crypto operations in the region. This rigorous regulatory process underscores Backpack EU’s dedication to operating within established legal frameworks.

Empowering European Traders with a Perpetual Futures Platform

The core offering of Backpack EU is its perpetual futures platform. Perpetual futures are a popular type of derivative contract in the crypto world. Unlike traditional futures, they do not have an expiry date. This feature allows traders to hold positions indefinitely, as long as they meet margin requirements. They track the price of an underlying asset, such as Bitcoin or Ethereum, closely. This makes them highly attractive for both speculation and hedging strategies. Backpack EU’s platform now brings this dynamic trading instrument to European investors within a fully regulated environment.

Traders can now access these sophisticated financial instruments with enhanced security. The MiFID II framework imposes strict rules on market conduct and investor protection. This includes requirements for best execution, client asset segregation, and robust risk management systems. For instance, the platform must ensure that client funds are kept separate from company operating funds. This significantly reduces counterparty risk. Furthermore, the regulatory oversight ensures fair pricing and transparent trading practices. Therefore, European traders gain access to advanced tools while benefiting from institutional-grade safeguards. This combination addresses a critical need in the rapidly evolving crypto market.

Rebuilding Trust: Backpack EU’s Commitment to Compliance

The acquisition of FTX EU by Backpack was more than a business transaction. It represented a crucial step towards restoring faith in the crypto industry. The collapse of FTX left many investors wary of centralized exchanges. Backpack EU’s subsequent actions, including the commitment to refund former FTX EU customers, demonstrated a strong ethical stance. This proactive approach distinguishes Backpack EU from many other entities. It shows a dedication to rectifying past wrongs and establishing a new paradigm for responsible operation.

Compliance is at the heart of Backpack EU’s strategy. Beyond the initial settlement, the company continues to adhere to stringent regulatory guidelines. This commitment extends to ongoing monitoring and reporting. The goal is to ensure full transparency and accountability. By prioritizing regulatory adherence, Backpack EU aims to foster a secure and trustworthy trading environment. This focus is essential for attracting both retail and institutional investors. Ultimately, it contributes to the broader maturation of the digital asset ecosystem in Europe. This rigorous adherence helps to mitigate risks and builds long-term confidence.

The Future of Crypto Trading in Europe

Backpack EU’s launch signifies a pivotal moment for the European crypto market. The introduction of a fully regulated perpetual futures platform under MiFID II sets a new precedent. This move will likely encourage other platforms to seek similar regulatory approvals. It could also spur further regulatory clarity across the continent. European regulators have been actively working to establish comprehensive frameworks for digital assets. The MiCA (Markets in Crypto-Assets) regulation is a prime example of this ongoing effort. Backpack EU’s proactive compliance positions it well within this evolving landscape.

This development could lead to increased institutional participation in crypto derivatives. Traditional financial institutions often require regulated venues for their operations. Backpack EU now provides such a venue. This expanded access could unlock significant liquidity and capital for the crypto market. Moreover, it offers enhanced protection for retail investors. The emphasis on regulation, transparency, and customer refunds creates a more secure environment. As a result, Backpack EU is not just launching a platform. It is helping to shape the future trajectory of regulated crypto finance in Europe. The company’s actions demonstrate that innovation and compliance can indeed coexist effectively.

In conclusion, Backpack EU’s successful launch of its CySEC-approved derivatives platform marks a monumental achievement. It underscores a clear shift towards greater regulation and investor protection in the European crypto market. With its robust MiFID II license and commitment to transparency, Backpack EU is poised to become a leading player. This development offers European traders a secure and compliant avenue for engaging with sophisticated crypto derivatives. The company’s dedication to customer refunds and stringent regulatory adherence positions it as a trustworthy and forward-thinking entity in the global digital asset space.