Backpack Initiates Launch of Cryptocurrency Exchange with Official Dubai License

Backpack launch crypto exchange in Dubai

In the domain of cryptocurrency technologies, Backpack, a Web3 digital wallet company, has officially disclosed its strategic initiative to launch a cryptocurrency exchange in Dubai. This significant endeavor follows the successful acquisition of a pivotal license from the Dubai Virtual Assets Regulatory Authority (VARA).

The genesis of Backpack, initiated under the auspices of the esteemed crypto infrastructure entity Coral, underscores a commitment to regulatory compliance. In a formal statement, Backpack asserts that its forthcoming exchange will adhere to regulatory standards, having been granted a Virtual Asset Service Provider (VASP) license by VARA. Notably, the Backpack Exchange, poised to debut, distinguishes itself as a next-generation platform, incorporating innovative elements such as zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custodial security, and expeditious order execution.

The regulatory oversight of VARA assumes paramount significance in this narrative, as it shoulders the responsibility of governing all virtual asset activities within the Emirate of Dubai, as elucidated in official statements.

At the helm of Backpack stands Armani Ferrante, who, in the face of formidable challenges over the preceding year, navigated the intricate landscape of cryptocurrency ventures. A former engineer at Alamada Research, Ferrante orchestrated a capital infusion of $20 million for Coral, co-led by FTX Ventures, a mere fortnight prior to the latter’s unfortunate collapse. Subsequent to the demise of FTX, Ferrante confronted the exigency of mitigating losses incurred by Coral, amounting to $14.5 million, inclusive of the $10 million invested by FTX Ventures.

Ferrante’s strategic decision to inaugurate an independent cryptocurrency exchange appears influenced, in part, by the repercussions of FTX’s adversities. In articulated sentiments, he expounds that it is imperative to terminate the era characterized by opaque crypto exchanges, embodying attributes contrary to the foundational principles of the industry‚ÄĒspecifically, exchanges with a singular point of failure, devoid of verifiable reserves, and lacking in audibility.

Anticipated to commence its beta phase in November, the Backpack Exchange is scheduled for public launch in the first quarter of 2024, as communicated by Backpack in its official statement. The development team behind the exchange affirms its commitment to augmenting the platform with diverse trading functionalities, encompassing derivatives, margin trading, and cross-collateralization. Furthermore, the statement underscores the professional acumen of Backpack’s compliance team, boasting expertise garnered from esteemed institutions such as Barclays, State Street, HSBC, and Coinbase.

In summation, Backpack stands on the precipice of introducing a transformative cryptocurrency exchange, characterized by regulatory adherence, pioneering features, and a resolute commitment to reshaping the paradigms within the cryptocurrency industry. The impending debut heralds a new epoch in the dynamics of digital asset exchange.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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