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Coinbase launches regulated crypto derivatives in Canada
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- DeepHorus
Coinbase, a major US cryptocurrency exchange, has officially launched regulated crypto derivatives trading in Canada. This expansion provides eligible Canadian users with access to perpetual and dated futures linked to leading digital assets like Bitcoin, Ether, and Solana. The move marks a significant step for the platform as it broadens its international services.
The derivatives are offered through Coinbase Financial Markets, a US-registered futures commission merchant. The service operates in Canada under foreign dealer and futures commission merchant exemptions, allowing it to navigate the regulatory landscape. This structure enables Coinbase to offer these advanced trading products to a qualified segment of the Canadian market.
Coinbase's offering includes 23 crypto perpetual and dated futures, along with five commodity futures and the Coinbase 50 Index. The company states it is the first major crypto-native platform to provide direct, native crypto futures in Canada. Access is restricted to eligible clients, including those with a minimum of $5 million in net assets or registered investment professionals.
The products feature nano-sized positions and offer leverage of up to 10x. This leveraged access allows traders to gain significant market exposure with a smaller initial capital commitment. The move caters to sophisticated investors seeking advanced tools for managing crypto portfolios.
Coinbase's launch is part of a broader trend of US trading platforms expanding into Canada. On the same day, online brokerage Webull also expanded its crypto trading to Canadian clients, using Coinbase's infrastructure. This wave of expansion highlights the growing attractiveness of the Canadian market for digital asset services.
The expansion occurs against a backdrop of increased crypto adoption in Canada. According to research from the Ontario Securities Commission, crypto ownership in the country has risen to 25% in 2024, up from 10% in 2023. This surge in interest has drawn the attention of major financial platforms seeking new users.
Earlier in June, Robinhood also entered the Canadian market through its $180 million acquisition of local crypto company WonderFi. This deal brought established Canadian exchanges and over 300,000 customers under the Robinhood umbrella. The competitive landscape for crypto trading in Canada is intensifying rapidly.
Meanwhile, Canadian regulators are tightening oversight in other areas. The government has proposed banning crypto ATMs due to fraud concerns and is advancing laws to prohibit cryptocurrency political donations. This dynamic creates a complex environment where derivatives trading expands while other crypto activities face new restrictions.
