This article comes from:The block
Original author: RT Watson
Odaily Translator: Husband How
Digital wallet company Backpack has announced that it will launch a new cryptocurrency exchange after receiving a license from Dubai’s Virtual Assets Regulatory Authority (VARA).
Backpack, founded by crypto infrastructure company Coral, said in a statement that its new exchange will be regulated after receiving a Virtual Asset Service Provider (VASP) license from VARA. At the same time, Coral officially stated:"Backpack Exchange adopts a new generation exchange model that utilizes zero-knowledge proof reserves (zk-proofs), multi-party computation (MPC) custody and low-latency order execution technology."It is reported that VARA is responsible for regulating all crypto asset activities throughout Dubai.
Armani Ferrante, CEO and founder of Backpack, has faced many hardships over the past year. As a former Alamada Research engineer, Armani Ferrante founded Coral and received US$10 million in investment led by FTX Ventures. However, FTX collapsed a few weeks later, resulting in Ferrante needing to deal with Corals loss of US$14.5 million, including FTX Ventures. This $10 million investment.
Ferrante’s establishment of a compliance exchange seems to have been inspired by the collapse of FTX.
He said in a statement:"It’s time to end the era of opaque exchanges dominating the industry. We cannot be exchanges without proof of reserves, without audit capabilities, and exchanges with single points of risk.
Backpack said in a statement that a beta version of the new transaction will go live in November 2022, with an official launch planned for the first quarter of 2024. The company also said that the Backpack exchange team will optimize trading features such as derivatives, margin and cross-collateralization. It also said that its compliance team has experience from Barclays, State Street Bank, HSBC and Coinbase.
It is reported that Backpack is one of the popular projects in the Solana ecosystem, using xNFT technology to provide users with a unique web3 wallet, NFT and social interaction experience. The team is also the issuer of the well-known Solana blue-chip NFT project Mad Lads, with active and loyal users and communities.
