Backpack Gets a VARA License
The Dubai Virtual Assets Regulatory Authority (VARA) has rolled out the welcome mat for Backpack, issuing a coveted Virtual Asset Service Provider (VASP) license. With this shiny new license, Backpack is officially in the crypto exchange game in Dubai, but don’t get too excited just yet! This license strictly limits them to crypto exchange services, leaving their other virtual asset offerings on the sidelines for now.
A Peek Inside Backpack Exchange
What’s under the hood of this newly launched Backpack Exchange? Among its high-tech features are zero-knowledge proof-of-reserves (because who doesn’t love a bit of cryptographic wizardry?), multi-party computation (MPC) for secure custody, and an impressive low-latency order execution setup. Sounds fancy, right?
Global Reach in a Flash
Within a mere five months, Backpack managed to snag operational licenses across multiple jurisdictions worldwide. Talk about a rapid expansion! This ambitious leap serves to bolster their reputation beyond Dubai, reaching crypto enthusiasts globetrotting in search of a reliable exchange.
Promises of Transparency
Entrepreneurial spirit comes alive in CEO Armani Ferrante, who staunchly opposes the opaque nature of most crypto exchanges. In his quest for clarity, Ferrante promises that Backpack Exchange will not only embrace but thrive on transparency, utilizing cryptographic techniques. He ardently advises: “Don’t trust, verify.” It’s refreshing to hear this kind of commitment in an industry muddied by rumors and scandals.
What’s Next for Cryptocurrency Lovers?
For those eager to dive in, existing users of Backpack and Mad Lads will get first dibs on access starting in November 2023, with a full public launch scheduled for Q1 2024. Keep your wallets ready! Meanwhile, Backpack has some exciting trading functionalities up its sleeve, including derivatives, margin, and cross-collateral trading.
Dubai’s Growing Crypto Ecosystem
The VARA has been busy lately, issuing various operational licenses to crypto exchanges, reinforcing Dubai’s status as a crypto-friendly jurisdiction. As a cherry on top, they rolled out full market regulations for Virtual Assets Service Providers in February 2023. However, let’s not forget, the rules come with hefty fines for rule-breakers. Play nice, or it could cost you a pretty penny!
