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.
Shakepay hold users’ funds in cold storage, though they do not publicize the percentage. Shakepay has existed since 2015, and so far, never has been hacked.
Shakepay states on its website that digital assets are backed by an insurance policy, though it does not mention any details.
Shakepay also offers two-factor authentication (2FA) for their customers, so you can be sure no one else is accessing your account. With Shakepay, you will also need to confirm via email when withdrawing funds. If you set up 2FA for your email account, you can be pretty sure no unauthorized person is withdrawing funds from your account.
Binance utilizes a layered and clustered system structure, supplementing user protection with its Secure Assets Fund for Users (SAFU) for enhanced security. It uses advanced security technologies like two-factor authentication (2FA), biometric recognition, and AI-driven behavior analysis to safeguard user accounts. Shakepay claims that digital assets are backed by an insurance policy, although no further details are provided. The platform also bolsters security by providing options for two-factor authentication (2FA), FaceID, and biometric confirmation to hinder unauthorized access. Despite this, the lack of clarity regarding the percentage of assets held in cold storage (offline) might be a concern for some users.
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.
Shakepay is regulated as a Money Service Business (MSB) by FINTRAC. Shakepay is based in Montreal and is allowed to operate in every Canadian province.
Both Binance and Shakepay are registered with FINTRAC and comply with the relevant Canadian federal regulations.
As a global cryptocurrency exchange, Binance follows international anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, including compliance with the US Bank Secrecy Act and the recommendations of the Financial Action Task Force (FATF). These regulations are aimed at preventing illegal activities and ensuring the security of its users.
The Ontario Securities Commission (OSC) made a public statement in June 2021 stating that Binance was not authorized to conduct business in the province. The statement also advised investors to exercise caution when dealing with Binance or any other crypto exchange that is not registered with the OSC. Binance subsequently announced that it would no longer offer services to Ontario-based users, citing the regulatory uncertainty in the province as the reason.
Overall, both Binance and Shakepay comply with the relevant regulations and are considered safe and trustworthy cryptocurrency exchanges in Canada.
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.
Shakepay offers chat support, helpful FAQs and access to customer support via their website.
Shakepay claims it has “customer service that cares.” It offers a useful support section on its website that can answer some of the most common questions and you can contact support via email at help@shakepay.com. Shakepay claims that support tickets can be answered within hours, even on weekends. We reached out to the support team via email to see how quickly they would respond. We received a reply the next day, less than 24 hours later.
Binance provides customer service round the clock with an array of support options including a live chat feature and an extensive help center. It also has a virtual assistant chat box and a support ticket system to address user queries and concerns.
Shakepay claims to have responsive customer service, with a support ticket system that responds to queries within hours, even on weekends. The exchange also offers a useful FAQ section on its website to assist with common inquiries.
Conclusion
Both Binance and Shakepay are excellent platforms for cryptocurrency trading, each with its own unique strengths. Shakepay's simplicity and its unique features like Bitcoin cashback on Visa card transactions make it an appealing option for those new to the crypto space. However, Binance, with its extensive cryptocurrency offerings, advanced trading features, robust security measures, and comprehensive customer support, offers a more rounded experience for both novice and experienced traders. Therefore, in this comparison, Binance emerges as the winner.
Initially, we recommended choosing Binance over Shakepay 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 Shakepay.
If you find that neither Binance nor Shakepay 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.
