Backpack, a Solana-based NFT wallet app, has announced the launch of a regulated cryptocurrency exchange called Backpack Exchange. The exchange has been granted a Virtual Asset Service Provider license for Exchange Services from the Dubai Virtual Assets Regulatory Authority (VARA), following a rigorous evaluation process. The license only covers the exchange, and not the other services and features within the Backpack app. Backpack Exchange will initially launch in private beta in November for existing members of Backpack and Mad Lads communities, and plans to open to the general public in the first quarter of 2024. The exchange will start with spot trading of cryptocurrencies and later expand to derivatives, margin trading, and more as Backpack obtains additional licenses globally.
This news comes after Coral’s experience with the collapsed crypto exchange FTX, which shuttered in November 2022. Coral had $14.5 million in investment funding held on the platform at the time, which remains inaccessible to the founders. This is good news as Backpack Exchange is built around technologies like zero-knowledge proof of reserves and multi-party computation (MPC), which prioritize investor protection and risk assurance.
You can read more about this topic here: Decrypt: Solana NFT App Backpack Launching Crypto Exchange With Dubai License