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.
ByBit is lacking in information about its security. ByBit uses cold storage for assets but it’s not clear what percentage of funds are held in cold storage.
For users that want to secure their account, they can set up two-factor authentication using Google Authenticator. Users will need to open this app and enter the code whenever they wish to withdraw from their ByBit account.
This year the Ontario Securities commission (OSC) accused ByBit of selling unlicensed securities to residents of Ontario. ByBit paid a $2.5M fine and has since restricted new account sign-ups from residents of Ontario.
Binance has an impressive security system that uses the SAFU (Secure Asset Fund for Users) fund to protect users and their funds. It also offers 2FA (two-factor authentication), biometric recognition, and anti-phishing tools for added security. ByBit ensures user security through 2FA and uses cold storage for assets. However, it is not clear what percentage of funds are held in cold storage, indicating a lack of transparency about its security measures.
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.
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
Binance is registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). However, it has faced issues with the Ontario Securities Commission (OSC) and is currently not operational in Ontario.
ByBit doesn't operate in Ontario due to issues with the OSC, but it registered with FINTRAC.
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.
ByBit has a helpful support centre on its website with numerous guides about crypto and how to use the exchange. You can also create a ticket on the website if you need to contact support. The chat support helped me within an hour and I had an issue with the withdrawal of TONCOIN.
Binance provides an extensive range of customer support options, including a comprehensive Help Center, live chat, and a responsive email support system. ByBit has a support center with various guides about crypto and how to use the exchange. Customers can create a ticket on the website if they need to contact support. The support team reportedly responds within an hour.
Conclusion
Both Binance and ByBit have their strengths, with robust trading platforms, a good range of cryptocurrencies, and options for advanced trading.
In the event of picking a superior platform, Binance would be our selection. The reasons for this include Binance's wider geographical acceptance, especially in most parts of Canada, better transparency about its security measures, and its registration with FINTRAC, which indicates a higher level of compliance with Canadian federal laws. While ByBit is a competent platform, Binance's edge in these areas makes it the more appealing choice.
Initially, we recommended choosing Binance over ByBit for your cryptocurrency trading needs. However, Binance and Bybit has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Binance or Bybit over other crypto exchanges.
If you find that neither Binance nor ByBit 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.
