Crypto wallet company Backpack announced it will launch a “regulated” exchange by obtaining a VASP license from the Dubai Virtual Assets Regulatory Authority. Also the trading platform, named “Backpack Exchange” will launch its beta version next month and will open to the general public in the first quarter of 2024.

Additionally digital wallet company Web3 by Backpack, started by a crypto infrastructure company named Coral, announced that it will launch a cryptocurrency exchange by obtaining an important license from the Dubai Virtual Assets Regulatory Authority, or VARA.

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After VARA granted a license to Backpack as a Virtual Asset Service Provider (VASP), so Backpack announced that it would regulate its new stock market. The company said, “Backpack Exchange developed a new-generation exchange with zk-proof (zero knowledge proof) of reserves, storing with multi-party computation (MPC) and executing transactions with low latency.”

VARA, according to the statement, “is responsible for regulating all virtual asset activities throughout the Emirate of Dubai.”

Backpack’s New Exchange Aims for Transparency

Armani Ferrante, CEO and founder of Backpack, had to ride out a tough period last year. Ferrante, a former Alamada Research engineer, had raised $20 million in a round led by FTX Ventures for Coral, but after the exchange crashed, Coral lost $14.5 million left on the exchange, including the initially deposited $10 million. It seems that Ferrante was partly inspired by the disaster caused by the crash of FTX to decide to launch his exchange.

Ferrante said in his statement: “It’s time for ending opaque crypto exchanges which represent everything our industry stands against. It shouldn’t be normal to use an exchange without a single point of failure, proof of reserves or auditability.”

The new exchange begins with a beta version According to the announcement, the new exchange will start with a beta version in November and will become active for the general public in the first quarter of 2024. The company also said, “The Backpack Exchange team will work to add various trading functions such as derivatives, margin, and cross-collateral“, and added that the compliance team has professional experience with Barclays, State Street, HSBC, and Coinbase.

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