Web3 digital wallet company Backpack has announced it is launching a cryptocurrency exchange after securing a key license from the Dubai Virtual Assets Regulatory Authority, or VARA.

Backpack, which was started by the crypto infrastructure company Coral, said in a statement that its new exchange will be regulated after being issued a Virtual Asset Service Provider, or VASP, by VARA. "Backpack Exchange has developed a next-generation exchange that incorporates a novel zero-knowledge proof of reserves, or zk-proofs, Multi-Party Computation, or MPC, for custody, and low latency order execution," the company said.

VARA is responsible for regulating "all virtual asset activities across the Emirate of Dubai," according to the statement.

Armani Ferrante, who is both CEO and founder of …