【速報】Dubai Regulator Grants VASP License to Backpack, Launches Backpack Exchange

VARA License for Backpack Exchange in Dubai

The Dubai Virtual Assets Regulatory Authority (VARA) has recently issued a Virtual Asset Service Provider (VASP) license to Backpack, a crypto wallet company. This has resulted in the launch of the Backpack Exchange, which offers crypto exchange services in Dubai. However, the license is limited to exchange services and does not cover other virtual asset products and services provided by Backpack.

Features of Backpack Exchange

Backpack Exchange incorporates various features, including zero-knowledge proof of reserves (zk-proofs), Multi-Party Computation (MPC) for custody, and low latency order execution. These features aim to enhance transparency, compliance, and the overall user experience. In addition, Backpack has obtained operational licenses in multiple jurisdictions worldwide over the past five months, reflecting the company's commitment to expanding its services globally.

Transitioning from Fiat to On-Chain Applications

While the flagship product, Backpack Wallet, currently operates as an unregulated product, it is designed to facilitate the transition from fiat to on-chain applications in the future. Backpack CEO Armani Ferrante aims to bring transparency to the crypto exchange industry, criticizing the lack of proof of reserves and auditability in many existing exchanges. By leveraging cryptographic techniques such as zk-proofs, MPC, and state machine replication, Backpack Exchange aims to set a higher standard for transparency and compliance.

Availability and Future Plans

Existing Backpack and Mad Lads users will have initial access to the Backpack Exchange starting from November 2023, with public access expected in the first quarter of 2024. During this period, Backpack plans to expand its offerings by introducing various trading functionalities, including derivatives, margin trading, and cross-collateral. The company has not yet responded to requests for comment regarding these recent developments.

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