Backpack to Launch a Crypto Exchange in Dubai
The Dubai Virtual Assets Regulatory Authority (VARA) has granted a Virtual Asset Service Provider (VASP) license to the crypto wallet Backpack. This has led to the launch of Backpack Exchange in Dubai.
The VARA license for Backpack is specifically for crypto exchange services and does not allow the company to offer other virtual asset products and services.
The exchange will have advanced features such as zero-knowledge (ZK) proof-of-reserves, multi-party computation (MPC) for custody, and fast order execution.
According to the announcement, Backpack Exchange has also obtained operational licenses in various jurisdictions within the past five months. Currently, the flagship product of Backpack, the Backpack Wallet, is not regulated.
However, it was designed to facilitate the transition from fiat to on-chain applications in the future.
CEO and co-founder Armani Ferrante aims to bring transparency to the crypto exchange industry by utilizing cryptographic techniques like zk-proofs and MPC, among others. Ferrante believes that traditional crypto exchanges with a single point of failure and without proof-of-reserves or auditability have become the norm.
