[Digital Today reporter Yoonseo Lee] Cryptocurrency exchange Coinbase has started offering cryptocurrency derivatives trading services in Canada.

Cointelegraph, a blockchain media outlet, reported on Tuesday local time that eligible investors can trade perpetual and fixed-expiry futures linked to bitcoin (BTC), ether (ETH) and solana (SOL).

Coinbase offers 23 cryptocurrency perpetual and fixed-expiry futures, five commodity futures and Coinbase 50 index products. Trading is conducted through Coinbase Financial Markets, a futures commission merchant registered with the U.S. Commodity Futures Trading Commission (CFTC). Coinbase Financial Markets operates in Canada under an exemption that applies to foreign dealers and futures commission merchants.

Eligibility is limited to qualified Canadian clients, including customers with at least $5 million in net financial assets, registered investment advisers and registered dealers. The contracts are designed as nano-sized small positions and support up to 10x leverage.

Coinbase's entry into Canada's derivatives market comes as the local base of cryptocurrency users expands. A survey by the Ontario Securities Commission (OSC) found that the share of Canadians holding cryptocurrencies rose to 25 percent this year from 10 percent in 2023.

Other U.S. trading platforms are also expanding their businesses in Canada, focusing on that growth. U.S. online brokerage Webull has expanded its cryptocurrency trading service for Canadian clients. It uses Coinbase infrastructure for trading and custody and added digital assets to its existing stock, exchange-traded fund (ETF) and options products.

Robinhood also entered the market in June by acquiring Canadian cryptocurrency company WonderFi for $180 million. Through the deal, it secured stakes in Canadian exchanges Bitbuy and Coinsquare, and took over about 300,000 deposit customers as well as WonderFi's local licences and regulatory approvals.

Separately from the expansion by trading platforms, Canada is tightening regulation over some cryptocurrency distribution channels. In April, the Canadian government proposed banning cryptocurrency automated teller machines (ATMs), citing concerns over fraud and money laundering. Lawmakers are also pursuing a bill to ban cryptocurrency donations to political parties and candidates.

In the Canadian market, expansion of regulated cryptocurrency products and tighter oversight of some distribution and fund flows are moving forward at the same time. Coinbase's launch is seen as a move, in this environment, to target demand for compliant derivatives among qualified clients who meet asset requirements rather than retail investors.