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.
NDAX keeps its digital assets in cold storage using Ledger Vault, although they do not state the percentage. Ledger is a big name in the cryptocurrency space, known for making secure hardware wallets.
When signing up to NDAX, you are forced to enable two-factor authentication. Most crypto exchanges will leave this optional, but we think everybody should do it, so we like this mandatory policy.
Additionally, when you wish to change your details such as your email, address, phone number etc, NDAX requires you to submit a selfie with a handwritten note outlining the request.
In terms of security, both exchanges take significant measures to protect their users. NDAX keeps digital assets in cold storage using Ledger Vault and maintains users' Canadian dollars in a segregated Canadian bank account. Binance employs a multi-layered security structure, which includes utilizing cold storage for digital assets. Similarly, both platforms mandate users to activate two-factor authentication, enhancing the security of their accounts.
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.
NDAX is registered as a Money Service Business with FINTRAC and AMF, NDAX is fully compliant with Canadian regulations.
Binance, a global cryptocurrency exchange, complies with various regulations in different countries it operates in. For its Canadian users, Binance adheres to the requirements set forth by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada), which is responsible for monitoring financial transactions to prevent money laundering and terrorist financing activities. Binance has faced some regulatory challenges in Ontario, Canada's most populous province. In June 2021, the Ontario Securities Commission (OSC) accused Binance of failing to comply with the province's securities laws. As a result, Binance decided to cease its operations in Ontario and no longer offer its services to Ontario-based users. NDAX, on the other hand, is a Canadian-based cryptocurrency exchange headquartered in Calgary. It is registered as a Money Service Business with both FINTRAC and AMF (Autorité des marchés financiers) in Quebec. By being fully compliant with Canadian regulations, NDAX ensures a secure and trustworthy trading environment for its users.
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.
NDAX provides a knowledge centre on its website. Articles here answer some of the most common questions. They also have a live chat function, which is handy when you need a quick answer. You can also email them for support. Confusingly, NDAX lists its phone number on its contact page, which is rare for a crypto exchange to do. We weren’t sure if this meant they had phone support, so we reached out via email to ask. They got back to us a very impressive 20 minutes later to let us know that they only have email support. So that’s that. Still, that’s the fastest response we’ve seen.
Customer support is crucial for any trading platform, and both Binance and NDAX offer assistance to their users. Binance has live chat, email, and a comprehensive knowledge base, while NDAX provides a knowledge center, live chat, and email support with a fast response time
Conclusion
In conclusion, both Binance and NDAX are reliable cryptocurrency exchanges for Canadian users. However, Binance stands out as the winner due to its wider range of cryptocurrencies, lower fees, and larger international presence. That being said, NDAX is still a solid choice, especially for those who prioritize security and user-friendly platforms.
Initially, we recommended choosing Binance over NDAX 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 NDAX.
If you find that neither Binance nor NDAX 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.
