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.
It is standard practice to hold most digital assets in third-party cold storage and Bitvo is no exception. It holds 95% of assets in cold storage and 5% in hot storage.
Customers’ fiat funds are held in segregated bank accounts and they also have multi-layered firewall infrastructure to protect the exchange. They also have a third-party that screens any cryptocurrencies looking to be listed on Bitvo. They analyze the coin’s history as well as other factors and don’t list anything that doesn’t align with their policies. This scrutiny helps to protect their customers from investing in scam coins.
In terms of security, both Binance and Bitvo have robust measures in place to protect their users' assets. Binance offers two-factor authentication (2FA), withdrawal address whitelisting, and security keys. Bitvo keeps 95%-100% of its digital assets in cold storage and maintains segregated bank accounts for its customers' fiat funds. While both exchanges prioritize security, Binance has experienced a hack in the past, which is worth considering when evaluating the safety of the platforms.
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.
Bitvo is registered with FINTRAC and is compliant with Canadian regulations.
Regarding compliance in Canada, Bitvo is a registered Money Service Business and compliant with FINTRAC regulations. Binance, on the other hand, has faced some challenges in Ontario, where it is currently banned. While both exchanges operate under Canadian federal laws and regulations, Bitvo's status as a Canadian-focused platform gives it an edge in terms of compliance.
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.
Bitvo has 24/7 support including live chat, email, and phone support. Bitvo is the first cryptocurrency exchange we’ve reviewed that has a phone support option, so this is a big plus when you need urgent help.
The quality of customer support is vital for any trading platform, and both Binance and Bitvo provide valuable help to their users. Binance provides 24/7 online customer support through ticket submission, though interacting with a bot is more common than directly connecting with a support agent. Bitvo, in contrast, offers 24/7 support via live chat, email, and phone, making it more accessible and responsive to user needs.
Conclusion
In conclusion, both Binance and Bitvo are excellent choices for cryptocurrency trading. However, Binance emerges as the winner due to its extensive selection of cryptocurrencies, advanced trading features, and massive global presence. While Bitvo has a strong focus on the Canadian market and offers an impressive customer support system, Binance caters to a wider range of traders, making it the ideal choice for many users.
Initially, we recommended choosing Binance over Bitvo 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 Bitvo.
If you find that neither Binance nor Bitvo 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.
