- Backpack Exchange, a new cryptocurrency exchange in Dubai, received regulatory approval from the Dubai Virtual Assets Regulatory Authority (VARA) to operate as a licensed Virtual Asset Service Provider (VASP).
- Backpack Exchange will offer transparent and auditable trading services with security features like zero-knowledge proofs and multi-party computation to verify reserves.
- The exchange aims to provide a seamless trading experience by integrating with the Backpack Wallet app and will launch in phases, starting with private beta testing in 2022 before a full public launch in 2024.
Dubai is quickly becoming a global hub for regulated cryptocurrency trading. This is evidenced by the recent launch of Backpack Exchange, a new crypto exchange that received approval from the Dubai Virtual Assets Regulatory Authority (VARA).
Backpack Exchange Receives Regulatory Approval
Backpack Exchange was granted a Virtual Asset Service Provider (VASP) license by VARA. This allows the exchange to offer trading services for cryptocurrencies like Bitcoin and Ethereum. The VASP license provides oversight and mandates transparency from Backpack Exchange.
According to VARA, the regulatory approval ensures Backpack Exchange has effective controls in place for anti-money laundering (AML), combating the financing of terrorism (CFT), and other risk management protocols.
Backpack Exchange’s Focus on Transparency
Armani Ferrante, CEO of Backpack Exchange, stated that the era of unregulated crypto exchanges must end. He emphasized the need for transparency and auditability.
Ferrante explained that Backpack Exchange will use techniques like zero-knowledge proofs and multi-party computation to offer users verification of reserves. The goal is to “raise the bar for transparency and compliance.”
Offering a Seamless Trading Experience
Backpack Exchange is integrated with the Backpack Wallet app. This provides users with easy access to trading directly within the wallet.
The exchange will begin private beta testing in November 2022 for members of the Backpack community. The public launch is scheduled for Q1 2024. More features like derivatives and margin trading will be added over time.
The launch of Backpack Exchange is a milestone for Dubai’s cryptocurrency industry. Approval from VARA ensures the exchange offers a transparent and regulated platform for crypto trading. As adoption grows, expect more exchanges like Backpack Exchange to emerge with a focus on security and compliance.