Security Compliance
Binance offers world-class security meaning your coins are in relatively safe hands. It offers two-factor authentication, so you can prevent unauthorized access to your account.
Keep in mind, Binance has been hacked before. Back in 2019, hackers stole 7,000 Bitcoin along with customers’ 2FA codes and API tokens. The hackers used phishing and viruses to gain access to the exchange. However, because Binance holds most of its digital assets in cold storage, the hackers only got away with what was in the hot wallet – about 2% of Binance’s Bitcoin holdings at the time.
As long as you take precautions, and transfer your crypto off the exchange to an external cryptocurrency wallet, you should be safe.
As a public company Bitcoin Well has a duty to be transparent with its investors and adhere to all Canadian regulations. Additionally, since you always take full custody of your bitcoin, you do not need to worry too much about the security measures of the platform, since you hold your bitcoin yourself.
Binance offers robust security measures, including two-factor authentication (2FA), whitelisting withdrawal addresses, and anti-phishing tools. However, in 2019, Binance suffered a security breach where hackers stole 7,000 Bitcoin and some user data. Binance covered the loss using its emergency insurance fund, ensuring no user lost their assets.
Bitcoin Well also emphasizes security. Given its localized approach to the Canadian market, it understands the specific security concerns of Canadian users. Detailed incidents or breaches related to Bitcoin Well were not present in my last update.
Regulatory Compliance
Binance has no restrictions for Canadians, except for Ontario residents. You can use it at full capacity whether it’s a simple buy order at market price or a more advanced order type.
Bitcoin Well is registered with FINTRAC and fully legal in Canada.
Binance recently announced its decision to exit the Canadian market by October 2023. Additionally, Ontario banned Binance for its residents, which raises concerns about its compliance with Canadian regulations.
Being a Canadian-focused exchange, Bitcoin Well adheres to Canadian federal regulations and works in alignment with the country's financial guidelines. Canadian federal organizations do monitor crypto-related activities, and Bitcoin Well has shown compliance with these entities.
Customer support
Binance offers 24/7 support and a live chat option. In addition, Binance also has helpful FAQs and online ticketing service for their customers. Binance replied to our concern within a day.
Bitcoin Well aims to provide great customer service and although it only has five reviews on Trustpilot, it has a 4.1-star rating, which is good. If you need support, you can browse the many help sections on their website, open a support ticket online, or even call or text their team. Most crypto exchanges do not offer a support phone number so this is a big plus.
Binance offers 24/7 online customer support, primarily through a ticketing system. Direct interaction is usually with a support bot, and it can be challenging to get human assistance. Their support is often described as limited, receiving a score of 2 out of 10.
Bitcoin Well, understanding its local clientele, is known for more personalized support.
Conclusion
Both Binance and Bitcoin Well are commendable exchanges in their own right. While Bitcoin Well caters directly to the Canadian audience with localized support and compliance, Binance's vast range of features and global recognition give it an edge. Despite some compliance hiccups in Canada, Binance's sheer volume, variety of tools, and extensive coin offerings make it the winner in this comparison.
Initially, we recommended choosing Binance over Bitcoin Well for your cryptocurrency trading needs. However, Binance has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Binance over Bitcoin Well.
If you find that neither Binance nor Bitcoin Well meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.
