Cyprus financial regulator CySEC has announced that it has decided to recall the suspension of the authorisation of Cyprus Investment Firm Trek Labs Europe Ltd, formerly FTX (EU) Ltd. The regulator stated that it has been satisfied with the Company’s compliance with the relevant provision of The Investment Services and Activities and Regulated Markets Law of 2017.

Backpack EU history

Now-bankrupt crypto exchange FTX had set up shop in Cyprus in 2021-2022, acquiring a CySEC CIF-licensed entity called K-DNA Financial Services Ltd. FTX was going to use the EU island nation as its gateway to offer regulated services to clients in Europe. After FTX went belly up, CySEC suspended the CIF license of the company FTX (EU) Ltd.

FTX EU was eventually acquired by USA/Dubai based crypto exchange operator Backpack, which renamed the licensed entity as Trek Labs Europe Ltd. With the acquisition, Backpack said that its new EU arm plans to reactivate FTX EU’s license to offer a full suite of crypto derivatives throughout the EU. The CySEC’s current action now allows for Backpack to go ahead with its regulated EU plans.

As part of the acquisition, Backpack EU said that it will distribute funds back to eligible former FTX EU customers.