Web3 Wallet Backpack’s Dubai Expansion Signals Regulated Crypto Boom
Backpack, an all-in-one Web3 wallet, has achieved a significant milestone by securing a Virtual Asset Service Provider (VASP) license in Dubai, further solidifying the city’s role as a thriving hub for crypto innovation. This regulatory approval paves the way for Backpack to introduce a fully regulated cryptocurrency exchange service, adding to the city’s crypto-friendly landscape.
According to a press release from the company, Backpack Exchange is slated to make its debut in a private beta for members this coming November, with plans to go public in early 2024. The beta version will offer spot crypto trading capabilities, setting the stage for a wider audience.
It’s crucial to note that the VASP license obtained from the Dubai VARA exclusively covers the crypto exchange aspect of Backpack’s digital asset services. The company envisions its exchange as a “next-generation” platform, integrating various cutting-edge features. This includes the implementation of zero-knowledge proofs of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and ensuring low-latency order execution.
Armani Ferrante, the CEO and founder of Backpack, emphasized the platform’s commitment to transparency. He believes that cryptocurrency users should not have to settle for exchanges with single points of failure, questionable reserves, or a lack of auditability. Backpack Exchange aims to leverage the core strengths of blockchain technology, providing a verifiable and unforgeable ledger.
The regulatory authorities in Dubai have been actively endorsing crypto-related ventures, with the VARA issuing licenses to various entities. However, the approval process is notably rigorous, ensuring that only responsible participants enter the market. The spokesperson for the licensing body praised Backpack Exchange for its dedication to investor protection and risk management.
The company’s plans extend beyond its initial launch, with intentions to introduce advanced trading functionalities, including derivatives, margin trading, and cross-collateralization. To further enhance their compliance and security measures, Backpack Exchange has enlisted a team with substantial experience gained from industry giants like Barclays, State Street, HSBC, and Coinbase.
It’s worth noting that Backpack’s journey is intertwined with Coral, a company specializing in Solana framework development, which is also the driving force behind the NFT project, Mad Lads. This confluence of innovations underscores the dynamic and ever-evolving nature of the crypto ecosystem, with Dubai at the forefront of this transformative wave.
