Dubai has approved Backpack, an all-in-one Web3 wallet, as the latest Virtual Asset Service Provider (VASP) to receive a license. This approval grants Backpack the ability to launch a regulated cryptocurrency exchange service in the city. According to the company’s press release, Backpack Exchange is scheduled to launch in private beta for members in November and will be available to the public in early 2024. The beta version will include spot crypto trading functionality. However, it is important to note that the VASP license only covers the crypto exchange and not Backpack’s other digital asset services.
“Backpack Exchange will be a next-generation exchange that incorporates various features,” said Armani Ferrante, CEO and founder of Backpack.
In its pursuit of responsible participants, Dubai’s VARA has been diligently approving licenses for various crypto businesses. However, the licensing process is demanding, with a spokesperson from the approval body emphasizing the importance of a rigorous qualification process. The spokesperson commended Backpack Exchange for prioritizing investor protection and risk assurance.
“Backpack Exchange must be recognized for their commitment to prioritize investor protection and risk assurance,” the spokesperson noted.
Furthermore, the announcement stated that Backpack Exchange’s team will work on expanding the trading functionalities to include derivatives, margin, and cross-collateral. The compliance team boasts professional experience with leading industry players such as Barclays, State Street, HSBC, and Coinbase. Backpack was created by Coral, the Solana framework development company, which is also responsible for the NFT project Mad Lads.
