Binance vs. Kraken: What Works Better For Canadians in 2024

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.

Kraken keeps 95% of users’ funds in cold storage. All account information is encrypted, their servers are locked in cages under 24/7 surveillance by armed guards. 

To help secure your Kraken account you can use two-factor authentication. You will receive an email notifying you of any withdrawal, and there is an account timeout for added protection.

Both Binance and Kraken prioritize security measures to safeguard user funds. Binance implements various security protocols, including cold storage for the majority of digital assets, encrypted account information, two-factor authentication, and bug bounty programs.

Kraken also employs cold storage for over 95% of assets, account encryption, two-factor authentication, and advanced security features like time locks. While both exchanges have strong security measures in place, it's worth noting that Binance has a larger user base and a longer operating history.

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. 

Kraken is fully compliant with US regulations. The exchange is independently audited to show that customers’ funds are properly held. Canadians can use the platform as well.

Both Binance and Kraken operate in Canada, but the level of compliance varies. Binance has faced regulatory challenges in Ontario and is not available in the province due to the Ontario Securities Commission's restrictions. However, Binance operates in other provinces of Canada and adheres to relevant regulations. Kraken, on the other hand, is accessible to Canadians in various provinces and complies with Canadian laws and regulations governing cryptocurrency exchanges. Canadian federal organizations such as the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) monitor compliance in the country's cryptocurrency industry. While the specifics of their involvement may differ between exchanges, both Binance and Kraken are expected to comply with federal regulations and cooperate with relevant authorities.

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.

Kraken offers a 24/7 live chat and email support. It also offers a good amount of learning documentation and helpful articles on its website. Unfortunately, many people say Kraken has poor customer support with tickets taking a long time to be resolved if ever.

Both Binance and Kraken provide customer support options to assist their clients. Binance offers 24/7 live chat support, email support, and a comprehensive help center on its website. Kraken also offers 24/7 live chat and email support, along with phone support available in the USA, UK, and European Union. Users of both exchanges can access helpful resources, troubleshoot issues, and receive assistance from knowledgeable support teams.

Conclusion

Both Binance and Kraken are reputable crypto exchanges, each with its own strengths. Binance offers a wider selection of cryptocurrencies, higher customer ratings, and a more extensive global presence. Its user-friendly platforms and robust security measures make it a preferred choice for many traders.
Nevertheless, it is crucial to take into account your individual requirements and preferences while selecting a crypto exchange. Ultimately, while both exchanges are good options, Binance emerges as the winner due to its broader range of offerings and strong reputation in the industry.

Initially, we recommended choosing Binance over Kraken 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 Kraken.

If you find that neither Binance nor Kraken 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.