Coinbase to Bring Derivatives Products to Canada: Report

Coinbase, the largest digital asset trading platform in the United States by trading volume, is all set to bring derivatives products to Canada, including perpetual futures contracts, a step that would attract a lot of regulatory scrutiny to the exchange due to its volatile nature. 

As reported earlier by TheCoinRise, the biggest competitor of Coinbase, Binance, ended operations in Canada in May last year, citing fresh guidelines released by Canadian authorities that had a significant impact on the country’s crypto business.

“New guidance related to stablecoins and investor limits provided to crypto exchanges makes the Canada market no longer tenable for Binance at this time,” said Binance at that time.

Coinbase Expands Footprint in Canada

As per a report, Coinbase believes that “it’s a natural extension of the spot market and an opportunity for the ecosystem to introduce products and services using digital assets that are efficient and trusted,” stated Lucas Matheson, the firm’s Canada country director. 

“We have been fairly privileged here to see regulators working to build a framework that can really be set up as a global standard around the world,” Matheson said.

Coinbase is currently in the process of seeking approval for its “restricted dealer registration,” a novel regulatory framework mandating exchanges to formally register with the Canadian government.

New Business Interests 

Matheson highlighted that “the principles of regulation in Canada allow companies to introduce new products and services.” The crypto exchange is currently interested in debuting products that are not based on the performance of the crypto market, the report said. 

Further, in order to expand its interests in the region, Coinbase also joined the Canadian Web3 Council, a multi-party non-profit organization seeking to ease the recent legislative and regulatory initiatives in Canada that are pushing digital asset service providers outside the boundaries of the nation. 

The regulatory hindrances have pushed many exchanges like Binance, Bybit, dYdX, OKX, Paxos, and Bittrex outside Canada.

Coinbase will Try New Services in Canada

Canada serves as a testing ground or sandbox for experimenting with new products, potentially paving the way for their introduction in the United States or European Union. 

“We’re working with our industry partners like the Web3 Council and regulators to explore a path forward to bring derivatives and leverage products for both the retail and institutional markets in Canada,” Matheson stated.

Exceeding Expectations with Revenue

Coinbase recently exceeded analysts expectations with its fourth-quarter financial results, reporting a revenue of $953.8 million. 

The company reported a 41% increase from the previous quarter and a significant 50% increase compared to the same period the previous year.