Backpack has secured three European regulatory licenses—MiCA, MiFID II, and PSD2—granting the crypto exchange a unique compliant position across all 27 EU member states. The announcement on July 1, 2026, coincided with the final MiCA compliance deadline and forced Binance to temporarily suspend its European operations after failing to obtain the necessary authorization. Backpack’s native token, $BP, jumped 15% in 24 hours on the news.
The triple accreditation covers crypto-asset services, traditional brokerage and investment services, and payments. Latvia’s central bank issued two of the licenses to Backpack EU, while the Cyprus Securities and Exchange Commission granted a MiFID II license. Founder Armani Ferrante called the achievement a milestone for building a compliant European presence. Markets reacted swiftly, with analysts describing the regulatory trifecta as a rare feat in the crypto space.
Meanwhile, Binance withdrew its application from Greece’s capital market commission and is now planning to reapply in France. Former CEO Changpeng Zhao called the exit “a loss for Europe,” while OKX CEO Star Xu criticized Binance’s attitude toward regulation. OKX itself now stands as the largest MiCA-regulated platform in Europe, creating a window for both OKX and Backpack to capture displaced trading volume.
The development highlights a broader regulatory shift: unlicensed firms face a “wipeout” as MiCA enforcement tightens, and early compliance offers a significant head start in building market share.
