Renowned crypto wallet, Backpack is set to launch a cryptocurrency exchange; Backpack Exchange in Dubai. The firm made the revelation today via a post on its official X (formerly Twitter) page. As revealed, the crypto wallet service provider recently obtained regulatory approval in the region, which birthed the establishment of the exchange.Â
More so, the Dubai Virtual Assets Regulatory Authority (VARA) recently administered a Virtual Asset Service Provider (VASP) license to the crypto wallet service provider. Meanwhile, the operational license in Dubai underlines how Backpack has focused more on market expansion of late. As indicated, the newly launched exchange in Dubai has received regulatory approval in various regions across the globe in recent times.
Insights Into Key Details About Backpack Crypto Exchange
Accordingly, the firm intends to secure operational licenses in various jurisdictions before the full launch of the exchange. Furthermore, Backpack is aiming to avail access to the exchange for its users by November 2023. Similarly, Mad Lads holders will as well enjoy the privilege and gain early access to the exchange before its official launch. It is worth mentioning that Mad Lads is an NFT collection belonging to Backpack.
However, Backpack indicated that it would allow public access to the cryptocurrency exchange by the first quarter of 2024. Before then, the team will focus on adding numerous trading features to the exchange. Consequently, the crypto wallet service provider disclosed that some of the trading functionalities are derivatives, margin, and cross-collateral.
Likewise, the exchange will incorporate key functionalities like zero-knowledge (ZK) proof-of-reserves, multi-party computation (MPC) for custody, and low-latency order execution. Additionally, the newly launched exchange will not go beyond offering crypto exchange services in Dubai. This is due to how the VARA license doesn’t permit Backpack to provide any of its services to customers in Dubai.
Presently, Backpack crypto wallet service is unregulated which in turn prevents the company from offering it to customers in the region. Lately, Dubai has emerged as a good destination for crypto investment. The region is now regarded as one of the top crypto-friendly countries in the world. As a result of its relaxed approach to cryptocurrency, crypto firms like Backpack are now rushing to establish their presence in the region.