Backpack Gains Dubai VASP License, Set to Launch Regulated Crypto Exchange

Crypto wallet firm Backpack has announced its plans to launch a regulated cryptocurrency exchange, termed the Backpack Exchange, after acquiring a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA).Founded by crypto infrastructure company Coral, Backpack revealed the impending exchange would incorporate a unique zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and low latency order execution.Backpack's CEO and founder, Armani Ferrante, managed to navigate the challenges posed by the collapse of FTX, after which Coral lost approximately $14.5 million of FTX’s investment in a $20 million funding round backed by FTX Ventures. Ferrante's decision to establish his own exchange seems influenced by this unfortunate incident.In a statement, Ferrante said, "It's time to put an end to the days of opaque crypto exchanges representing everything our industry stands against. Using an exchange with a single point of failure, without proof of reserves, or without auditability shouldn't be the norm."Backpack Exchange aims to initiate beta operations in November before officially launching in Q1 of 2024. The company said its team would work on integrating various trading functionalities like derivatives, margin, and cross-collateral. It also noted that their compliance team boasts professional experience from premier financial institutions like Barclays, State Street, HSBC, and Coinbase.