Backpack vs Coinbase Comparison

Editorial assessment, November 2026: We have downgraded Backpack to 2.0 out of 5 and make no recommendation. The European entity Trek Technologies SIA (Backpack EU) has been authorised under MiCA since 27 May 2026 and is listed in the ESMA register (file dated 5 November 2026). On cost transparency, coin selection and savings features, however, Backpack falls short of the exchanges we recommend: we found no published fees for withdrawals to your own wallet, the offer covers around 50 coins, and there is no savings plan. MiCA-licensed exchanges are listed in our exchange comparison.

Backpack is operated by Trek Labs, a team that also includes former FTX employees. Its European entity is regulated in the EU: on 27 May 2026, the Bank of Latvia granted Trek Technologies SIA two licences, a CASP authorisation under MiCA and a payment institution licence. For derivatives, the provider names Trek Labs Europe Ltd, an investment firm under MiFID II supervised by Cyprus's CySEC, and there is also a VARA licence in Dubai. The low maker fees starting at 0.08% and the integration of wallet and exchange in one ecosystem are appreciated by users.

Cost transparency is seen as room for improvement; in particular, the undisclosed wallet transfer fees and swap fees of 0.85% are occasionally criticized. The selection of around 50 cryptocurrencies is limited compared with larger exchanges, and the lack of a savings plan limits the options for long-term investors.

The connection to former FTX employees is viewed differently in the market. Backpack is aimed primarily at technically savvy users who are looking for low trading fees and integrated wallet features and are willing to make compromises on cost transparency and coin selection.

In short: Coinbase is one of the best-known crypto exchanges in the world and is licensed under MiCA for customers in the EU. More than 400 crypto assets, a simple app, staking and a Nasdaq-listed parent company speak for the platform. The simple buy flow costs more than at many other exchanges, with a Coinbase fee of up to 1.875% plus spread; frequent traders therefore use Coinbase Advanced with maker and taker fees.

Is Coinbase safe and licensed in the EU?

Yes, Coinbase may serve customers across the EU. Crypto services are provided by Coinbase Luxembourg S.A., licensed under MiCA since 20 June 2025 and supervised by Luxembourg's financial regulator CSSF. Through the EU passport the licence covers 30 EEA countries, including Germany, France and Spain (ESMA register, file of 30 October 2026). Euro balances are held as e-money by Coinbase Ireland Limited, supervised by the Central Bank of Ireland. According to the Coinbase user agreement for the EEA, crypto assets and e-money are not covered by a deposit guarantee or an investor compensation scheme. The parent company Coinbase Global has been listed on Nasdaq since 2021 and publishes its results there regularly.

Fines from the Central Bank of Ireland: On 22 October 2026 the Central Bank of Ireland announced a fine of €3.25 million against Coinbase Ireland Limited. Between November 2020 and August 2025 the company did not adequately safeguard client funds, and the safeguarding account was under-funded for extended periods. The regulator does not allege any loss of client money; Coinbase admitted the breaches, and the sanction takes effect once confirmed by the Irish High Court. In November 2025 the same authority fined Coinbase Europe Limited €21.46 million over gaps in transaction monitoring. Details in our report on the Coinbase Ireland fine.

Data leak in 2025 and scam calls: In May 2025 Coinbase disclosed that bribed overseas support agents had copied customer data of less than 1% of monthly transacting users to enable scams in Coinbase's name. According to Coinbase, passwords, private keys and funds were not affected, and the company pledged to reimburse customers who were tricked into sending funds to the attackers (Coinbase statement). Coinbase never asks for your password or 2FA codes and never asks you to move crypto to a new address or another account: anyone pushing you to do so on the phone is a scammer.

Stablecoins under MiCA: For customers in the EEA, USDT, DAI, PYUSD and other stablecoins without MiCA authorisation can no longer be traded on Coinbase; according to Coinbase, balances still held on the cut-off date of 30 October 2026 are converted once into USDC at the market rate, and deposits of these coins after that date are no longer credited. Background in our report on the switch.

What you can do yourself: turn on two-factor authentication, never share codes on the phone and keep larger amounts on your own hardware wallet.

Who is Coinbase for?

Coinbase suits beginners who want a well-known platform with a simple app and a listed parent company, and investors who want buying, savings plans and staking in one place. Frequent traders save with Coinbase Advanced in the order book. For euro trading, Bitvavo and Kraken are cheaper. All licensed providers are listed in our comparison of regulated crypto exchanges.