Crypto Mania Exchanges

Backpack Receives Virtual Asset Service Provider License in Dubai

  • Backpack Exchange supports zero-knowledge (ZK) proof-of-reserves.
  • The Exchange will be made available to the general public in the first quarter of 2024.

The cryptocurrency wallet Backpack has been granted a Virtual Asset Service Provider (VASP) license by the Dubai Virtual Assets Regulatory Authority (VARA), leading to the introduction of the Backpack Exchange.

Backpack is only able to provide cryptocurrency exchange services in Dubai under its VARA license; it is not able to provide any other virtual asset-related goods or services. In addition to multi-party computation (MPC) for custody and low-latency order execution, the announcement states that Backpack Exchange supports zero-knowledge (ZK) proof-of-reserves.

Strategic Expansion

Also included in the announcement was the fact that in the preceding five months, Backpack Exchange has secured operating licenses in a number of nations across the globe.

Although the flagship Backpack Wallet is presently an unregulated product, it was developed with the intention of assisting consumers in making the switch from fiat to on-chain apps. Armani Ferrante, CEO and co-founder of Backpack, has stated his intention to “put an end” to crypto exchange anonymity.

Moreover, Backpack Exchange will be made available to the general public in the first quarter of 2024, with early access beginning in November 2023 for existing Backpack and Mad Lads users. Trading options like derivatives, margin, and cross-collateral are just some of the ones that Backpack hopes to provide during this period.

Over the course of the previous year, Dubai’s VARA regulator handed a wide range of operating licenses to a large number of cryptocurrency exchanges, solidifying its standing as a crypto-friendly jurisdiction.

New rules for VASPs in the emirate were released in February 2023. When it comes to promotional activities, cryptocurrency exchanges must follow the same rules as any other business.

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