Backpack, a web3 wallet, announced the debut of its crypto exchange in Dubai after securing its Virtual Asset Service Provider (VASP) license in the country. The crypto firm received its permit from the Dubai Virtual Asset Regulatory Authority (VARA).

Backpack is also known to be the group behind Mad Lads on Solana, and it said on Tuesday, Oct. 31, that it will roll out a regulated cryptocurrency exchange in Dubai that will be simply called "Backpack Exchange."

Issuance of VASP License

Backpack received the VASP approval VARA, which gives it the permission to offer its services in the country. The regulatory authority oversees all activities related to digital assets across the Emirates of Dubai, and it typically applies a strict evaluation process before making its decision to approve a license.

As per Decrypt, the spokesperson of VARA also said in a statement that Backpack Exchange "must be recognized for its commitment to prioritize investor protection and risk assurance."

Then again, it was noted that the issued license solely covers Backpack Exchange and does not apply to other digital asset products and services that the Backpack company is offering.

Launch Date and Other Details

While the launch of Backpack Exchange was already announced, the service itself is not yet open to the public. The new crypto exchange platform will initially be available in private beta this month and will be exclusive to members of existing Backpack and Mad Lads communities.

It will finally be accessible to the general public within the first quarter of 2024. Later on, Backpack is planning to apply for more licenses to bring its crypto exchange service to other countries.

"It is time to put an end to the days of opaque crypto exchanges representing everything our industry stands against," Backpack founder and chief executive, Armani Ferrante, said in a press release. "It should not 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."

He added, "Backpack Exchange hopes to raise the bar for transparency and compliance to demonstrate the best this technology has to offer. Don't trust, verify."

Photo by: Backpack Exchange Press Release