Backpack Takes a Bold Step with New Dubai-Licensed Exchange
Backpack’s new crypto exchange, powered by advanced cryptographic techniques and licensed by Dubai’s Virtual Assets Regulatory Authority, promises enhanced transparency and security, catering exclusively to the Dubai market.
Backpack, known for its Web3 digital wallet, is set to reshape Dubai’s cryptocurrency landscape with the introduction of its newly licensed exchange. Thanks to a coveted Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA), the Backpack Exchange is on track to provide a revolutionary trading experience.
Incorporating zero-knowledge (ZK) proof-of-reserves and multi-party computation (MPC) for custody, the platform sets a new benchmark in operational efficiency and security. In addition, its low-latency order execution ensures swift transactions for its users.
Armani Ferrante, Backpack’s CEO and co-founder, envisions a future where crypto exchanges are synonymous with transparency. “Opaque crypto exchanges are a thing of the past,” Ferrante emphasized. Highlighting the platform’s cryptographic verifications, such as zk-proofs and MPC, he remarked, “Don’t trust, verify.”
The beta version of this exchange is set to launch in November 2023, initially available to current Backpack and Mad Lads users. A broader release to the general public is slated for the first quarter of 2024. During this phase, Backpack Exchange aims to diversify its offerings, with features like derivatives, margin, and cross-collateral trading.
Dubai’s VARA has been actively promoting a crypto-friendly environment, granting operational licenses to various exchanges over the past year. However, it’s worth noting that Backpack’s license is specific to Dubai, confining its services within the emirate and not extending to other virtual asset products.
Furthermore, as part of its regulatory responsibilities, VARA issued guidelines in February 2023. These mandates cover marketing, advertising, and promotion standards for VASPs, with stringent penalties for non-compliance.
With its commitment to transparency and backed by robust cryptographic techniques, Backpack Exchange stands out as a beacon in the crypto trading world, promising a more secure and transparent trading environment for its users.
