Backpack, an all-in-one Web3 wallet, has received a Virtual Asset Service Provider (VASP) license from the Dubai Virtual Assets Regulatory Authority (VARA). This will allow Backpack to launch a regulated cryptocurrency exchange service in Dubai. The exchange, dubbed Backpack Exchange, is set to launch in private beta for members in November, followed by a public launch in early 2024. The beta version will feature spot crypto trading functionality.
Backpack Exchange has been described as a “next-generation exchange” that incorporates various features, including zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and low latency order execution. “It shouldn’t be normal to use an exchange with a single point of failure, without proof of reserves, or auditability,” said Armani Ferrante, CEO and founder of Backpack. “A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that.”
Backpack Exchange is among the first few crypto exchanges to secure a full market license within the VARA regime. The exchange team has experience with leading industry players such as Barclays, State Street, HSBC, and Coinbase. Backpack is a Solana framework development company that also heads the NFT project Mad Lads.