Web3 wallet and NFT provider Backpack is set to launch a regulated cryptocurrency exchange in Dubai after receiving a licence from the Dubai Virtual Assets Regulatory Authority (VARA).
The licence grants Backpack Exchange the clearance to operate in Dubai. However, it will not cover any of the firm’s other digital asset products or crypto-related services.
According to Backpack, the exchange will use zero-knowledge proof of reserves, multi-party computation for custody and low-latency order execution.
Backpack Exchange will launch in private beta for existing Backpack customers in November with spot crypto trading functionality with a full launch scheduled for the first quarter of 2024.
“It’s time to put an end to the days of opaque crypto exchanges representing everything our industry stands against,” said Armani Ferrante, Backpack CEO and founder.
“It shouldn’t be normal to use an exchange with a single point of failure, without proof of reserves, or without audibility. A verifiable, unforgeable ledger is the exact problem blockchains solve, and Backpack Exchange is taking full advantage of that.”
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