Backpack EU Secures Three Core European Financial Licenses
Backpack EU has announced that it has received a MiCA license and a Payment Institution (PSD2) license from the Central Bank of Latvia (Latvijas Banka). Together with the previously held MiFID II license, the company now achieves full coverage across three major financial domains: crypto assets, securities brokerage, and payments. The MiCA license covers crypto asset custody and exchange services; the MiFID II license covers derivatives contracts, securities, and brokerage activities; and the payment institution license enables stablecoin-based payment services.
Business Implications of the License Trio
The combination of these three licenses means Backpack EU can offer an integrated suite of digital asset services within the European Economic Area: spot crypto trading, perpetual contract trading, brokerage services for tokenized securities, and payment services using stablecoins. Such a comprehensive license structure is rare among European crypto trading platforms, as most competitors hold only a MiCA license or a payment license, but not all three. Backpack emphasized that it has been operating in Europe for more than three years, during which it participated in the compensation process for FTX Europe users (some FTX Europe user assets were distributed via Backpack). This hands-on compliance experience has equipped the firm with a deep understanding of regulatory expectations. Backpack stated that its European compliance framework and operational know-how will facilitate its regulatory applications in Japan, South Korea, the United States, and other jurisdictions.
Strategic Significance and Market Impact
Against the backdrop of the full implementation of the EU's Markets in Crypto-Assets (MiCA) regulation, Backpack has become one of the first platforms to secure all three core license types. This move not only strengthens its competitive position in the European digital asset market but may also prompt other exchanges to accelerate their multi-license strategies to meet increasingly stringent regulatory requirements. Furthermore, the PSD2 payment license will bridge the gap between digital assets and traditional financial systems, laying the compliance foundation for on-chain settlement, custody, and fiat on/off ramps. Backpack's initiative signals that a fully licensed, one-stop-shop model is becoming the new benchmark for regulated crypto services in Europe.