Backpack Exchange: licences, security, fees and reviews
Centralized exchange
In short
- Legal entity
- Trek Labs Ltd FZE (Dubai)
- Fees
- Spot maker: 0.08% at Tier 1 (as of 31 October 2026)
- Risks and caveats
- Licences are entity- and region-specific; the VARA licence covers only UAE-resident users of Trek Labs Ltd FZE and only spot trading.
- Checked
- 31 October 2026
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Key facts
- Type
- Centralized exchange
- Exchange launched
- 2023
- Operator
- Backpack group: Trek Labs Ltd FZE (Dubai, VARA), Trek Technologies SIA (Backpack EU, Latvia), Trek Labs, Inc. (US); founder and CEO Armani Ferrante
- Official site
- backpack.exchange
Key facts checked on 31 October 2026 against official sources and regulator registers.
What is Backpack Exchange
Backpack Exchange is a centralised exchange for crypto spot, perpetual futures, lending and, since 2026, US stocks and tokenized securities, from the team behind Backpack Wallet led by Armani Ferrante. The exchange company was incorporated in March 2023 and launched in beta in November 2023. It operates through regional entities licensed in Dubai, the EU (MiCA, Latvia) and US states.
Good to know
- The Dubai VARA licence covers only users onboarded by Trek Labs Ltd FZE as UAE residents, and only spot trading: no futures or margin in the UAE. ↗
- In the EU, Backpack EU (Trek Technologies SIA) holds a MiCA authorisation from Latvijas Banka dated 27 May 2026; Backpack also says it launched Backpack EU in September 2025 under a CySEC MiFID II licence and returned funds to 110,000 former FTX EU clients. ↗
- 35.81% of the assets in Backpack's proof of reserves on 31 October 2026 was its own BP token. ↗
- Backpack lost 88% of its corporate treasury in the FTX collapse in November 2022, per its own timeline. ↗
- Backpack offers a tool to sell FTX International claims via a third party, FTX Creditor, which it does not endorse. ↗
- Fees are marked as subject to change and depend on staked BP, assets held or 30-day volume. ↗
Services
| Parameter | Details |
|---|---|
| Spot trading | Crypto spot trading. |
| Derivatives | Perpetual futures on crypto and equities, up to 75x leverage (not in the UAE). |
| Staking / Earn | Borrow/lend and yield on USD balances, collateral and open PnL. |
| Own token | BP, launched in March 2026 with 25% of supply to the community at TGE. |
| Custody / wallet | Backpack Wallet, a self-custodial wallet built into the app. |
Licences and registrations
| Jurisdiction | Entity | Licence / registration | Regulator |
|---|---|---|---|
| United Arab Emirates (Dubai) | Trek Labs Ltd FZE (Backpack) | VASP Licence VL/23/07/001, Exchange Services, issued 30 October 2023, Active (spot only) | Virtual Assets Regulatory Authority (VARA) |
| European Union (Latvia) | Trek Technologies SIA (Backpack EU) | MiCA CASP authorisation, 27 May 2026: custody, exchange for funds and crypto, execution of orders, transfers; passported to 29 EEA states | Latvijas Banka |
| European Union (Cyprus) | Backpack EU (entity not named) | MiFID II licence regulated by CySEC (company statement; CySEC register not checked) | Cyprus Securities and Exchange Commission (CySEC) |
| United States | Trek Labs, Inc. | FinCEN money services business No. 31000339714338; state licences under NMLS ID 2665675, e.g. California DFAL licence, Arizona, Delaware, DC, Illinois and Iowa money transmitter licences (company statement) | FinCEN; state regulators |
Proof of reserves as of 31 October 2026
| Asset | Reserve ratio |
|---|---|
| Total | 100.3% |
| BTC | 100.0% |
| SOL | 100.4% |
| ETH | 101.2% |
| USDT | 102.3% |
Method: Customer balances compared with Backpack wallet balances per asset, with user proof verification (self-published, updated live). ↗
Security and audits
- Backpack publishes a live proof-of-reserves page; on 31 October 2026 the overall reserve ratio was 100.28%, with 35.81% of assets in its own BP token.
- Accounts can use 2FA, passkeys and secondary security settings; KYC is required.
Security incidents
No security incident is recorded in the official sources checked on 31 October 2026: support.backpack.exchange/sitemap-pages.xml, learn.backpack.exchange/sitemap.xml, support.backpack.exchange/api/v2/help_center/art, hacked.slowmist.io, api.llama.fi/hacks, rekt.news/leaderboard
Fees
| Parameter | Details |
|---|---|
| Spot maker | 0.08% at Tier 1 (as of 31 October 2026) |
| Spot taker | 0.10% at Tier 1 (as of 31 October 2026) |
| Futures maker | 0.02% at Tier 1 (as of 31 October 2026) |
| Futures taker | 0.05% at Tier 1; funding paid between longs and shorts, mostly hourly (as of 31 October 2026) |
Who can use it
- Verification: KYC identity verification is required.
- Not served: North Korea, Iran, Cuba and the Crimea, Sevastopol, Luhansk and Donetsk regions; not yet available in Canada, Japan and New Zealand. Futures and margin are not available in the UAE.
History
| Date | Event |
|---|---|
| April 2022 | Backpack Wallet is incorporated. |
| November 2022 | Backpack loses 88% of its corporate treasury in the FTX collapse. |
| March 2023 | Backpack Exchange is incorporated. |
| 30 October 2023 | VARA licence issued to Trek Labs Ltd FZE. |
| November 2023 | Backpack Exchange beta launch. |
| September 2025 | Backpack EU launches and returns funds to former FTX EU clients. |
| March 2026 | BP token launches. |
| 27 May 2026 | Latvijas Banka authorises Trek Technologies SIA (Backpack EU) under MiCA. |
Risks and caveats
- Licences are entity- and region-specific; the VARA licence covers only UAE-resident users of Trek Labs Ltd FZE and only spot trading.
- A large share of reserves is held in Backpack's own BP token.
- Crypto investments are high risk and not covered by the UK FSCS; leveraged perps can be liquidated.
About the company
- CEO
- Armani Ferrante (founder; creator of Anchor on Solana)
- Legal entity
- Trek Labs Ltd FZE (Dubai)
- Legal entity
- Trek Technologies SIA, Riga (Backpack EU)
- Legal entity
- Trek Labs, Inc. (US)
- Founded
- Exchange incorporated March 2023; wallet April 2022
- Own token
- BP
Official links
- Website: backpack.exchange
- Fees: support.backpack.exchange/exchange/trading/trading-fees
- Proof of reserves: backpack.exchange/reserves
- Licences: support.backpack.exchange/legal
- Terms of use: support.backpack.exchange/legal/general-legal/user-agreement
- Blog: learn.backpack.exchange/blog
Questions and answers
Is Backpack Exchange regulated?
Yes, by region: Trek Labs Ltd FZE holds a VARA licence (VL/23/07/001) in Dubai, Trek Technologies SIA (Backpack EU) is MiCA-authorised by Latvijas Banka, and Trek Labs, Inc. reports a FinCEN MSB registration and US state licences.
Does Backpack publish proof of reserves?
Yes, a self-published live page. On 31 October 2026 the reserve ratio was 100.28%, with 35.81% of assets in Backpack's own BP token.
What are Backpack's fees?
At Tier 1: spot 0.08% maker / 0.10% taker, futures 0.02% maker / 0.05% taker (as of 31 October 2026); fees are marked subject to change.
Who owns Backpack?
Backpack was founded by CEO Armani Ferrante; the exchange company was incorporated in March 2023.
Is Backpack available in Canada or Japan?
Not yet: Canada, Japan and New Zealand are listed as not currently served.
Sources
- VARA - Public Register
- ESMA - Interim MiCA register, CASPs (CSV)
- Backpack - Home
- Backpack - About
- Backpack - Proof of Reserves
- Backpack - Legal
- Backpack - VARA License Information
- Backpack - States Where We Operate (US)
- Backpack - UK Crypto Regulations & Risk Disclosure
- Backpack - Disclaimer re: FTX Creditor
- Backpack - Trading Fees
- Backpack - Futures Fees
- Backpack - Supported Regions
- Backpack - Why KYC is Required
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