Tag: financial hub

Ex-FTX Execs Launch New Crypto Exchange Backpack

Nearly a year after the dramatic collapse of FTX, several former executives of the defunct cryptocurrency exchange have banded together to launch a new venture in the digital currency space. This new endeavor, named Backpack Exchange, is set to reshape the crypto landscape with a focus on enhanced security and regulatory compliance.

Genesis of Backpack Exchange

Leadership and Vision: The project is spearheaded by Can Sun, previously a lawyer at FTX, with significant support from Armani Ferrante, a former FTX employee who now serves as CEO of Trek Labs, the holding company based in the British Virgin Islands. Trek Labs, a Dubai-based startup, has been authorized to offer cryptocurrency services in the region. Claire Zhang, Sun’s former legal deputy at FTX and Ferrante’s spouse, also plays a crucial role in the team, albeit with plans to step down post-investment round.

Mission and Technology: With lessons learned from FTX’s downfall, Backpack Exchange focuses on ensuring the security of customer funds, a critical aspect FTX failed at. The exchange incorporates a self-custody solution utilizing a multiparty computation (MPC) technique, designed for enhanced security in fund transactions.

Strategic Location and Regulatory Compliance

Dubai as a Crypto Hub: The choice of Dubai as the base for Backpack Exchange is strategic. Dubai’s progressive stance towards virtual assets and the regulatory framework established by the Dubai Virtual Assets Regulatory Authority (VARA) offers a conducive environment for crypto ventures. Backpack has obtained the Dubai Virtual Asset Service Provider (VASP) license, enabling it to operate within one of the world’s emerging financial centers.

Product Offerings and Launch Timeline: Backpack Exchange plans to commence operations with spot trading, featuring state-of-the-art features like zero-knowledge proof of reserves and low-latency order execution. Exclusive early access is set for November 2023 for existing Backpack and MadLads community members, followed by a broader public launch in early 2024.

The Road Ahead: Transparency and Market Integrity

Commitment to Transparency: In a bid to instill greater trust and compliance in the crypto industry, Backpack Exchange adheres to VARA’s stringent regulations. This commitment is seen as a major step towards the institutionalization of cryptocurrency trading in Dubai, enhancing investor protection and maintaining market integrity.

Dubai’s Regulatory Framework: The decision of Dubai to regulate and license exchanges like Backpack reflects a positive approach towards embracing blockchain technology, with a focus on creating a regulated yet thriving environment for crypto-assets.

Upbit Singapore Secures MAS's MPI Licence

Upbit Singapore, a part of the South Korea-based Upbit group, recently achieved a significant milestone in its journey within the regulated digital asset ecosystem. The Monetary Authority of Singapore (MAS) granted Upbit Singapore a Major Payment Institution (MPI) licence. This strategic development, announced on January 8, 2024, follows the in-principle approval (IPA) received in October 2023, showcasing Upbit Singapore’s compliance with the Payment Services Act 2019​​​​.

The MPI licence is a crucial step for Upbit Singapore, allowing it to expand its digital asset business in Singapore, a globally recognized financial hub and a nexus for digital asset innovation. This development is aligned with Singapore’s robust regulatory framework and reputation as a leading financial center in Asia. With this license, Upbit Singapore is well-positioned to serve both institutional and retail clients, offering cutting-edge digital asset solutions and contributing significantly to Singapore’s thriving digital ecosystem​​​​.

Besides Upbit Singapore, several notable crypto-related companies have been granted the Major Payment Institution license, enabling them to offer Digital Payment Token services. These include DBS Vickers Securities, operating the DBS Digital Exchange; Digital Treasures Center, providing online digital payment solutions; FOMO Pay, a digital payment platform; Independent Reserve, a regulated crypto exchange; UK-based Revolut; Sparrow Tech Private, offering digital asset solutions; Hako Technology’s Coinhako crypto exchange platform; Paxos, specializing in blockchain technology; and MetaComp, catering to corporates and institutional investors with digital asset services. This trend underscores Singapore’s role as a significant hub for digital asset innovation and regulation.

Upbit Singapore is a wholly-owned subsidiary of Upbit APAC, which also operates regulated digital asset exchanges in Thailand and Indonesia. Upbit APAC’s portfolio includes Upbit Exchange (Thailand), regulated under the Thailand Securities and Exchange Commission, PT Upbit Exchange Indonesia, regulated under Indonesia’s Commodity Futures Trading Regulatory Agency, and VerifyVASP, the world’s largest Travel Rule solution provider for digital assets​​​​.

The granting of the MPI license to Upbit Singapore is not an isolated event but reflects a broader regulatory trend in Singapore. Other notable entities, including Sygnum Singapore, Coinbase, GSR Markets, Blockchain.com, and Crypto.com, have also secured MPI licenses. This pattern indicates Singapore’s commitment to fostering innovation while ensuring consumer protection, thereby attracting dedicated innovators to its shores​​.

Alex Kim, the Founder and CEO of Upbit Singapore, highlighted the importance of the MPI license in unlocking new opportunities for retail, institutional, and infrastructure-centric businesses. The interim grant of the MPI license positions Upbit Singapore among the ranks of regulated digital asset exchanges under Upbit APAC, advancing the group’s ambition to broaden its global reach and cater to institutional and infrastructure-focused businesses​​.

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