Security Compliance
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.
Bitbuy is one of the safest crypto exchanges for Canadians. The Blockchain Intelligence Group has completed its third annual proof of reserves and due diligence report confirming that Bitbuy exceeds its mandate requiring 95% of customer funds to be held in cold storage. Bitbuy keeps 98% of Bitcoin, Litecoin, and Ethereum funds in cold storage, which is one of the highest percentages we’ve seen.
Bitbuy is quite transparent about its security measures, stating that it holds 97% of digital assets in cold storage, which is higher than many other exchanges. It also has a 1:1 Bitcoin insurance policy, conducts regular financial audits, and is regulated by FINTRAC as a Money Service Business (MSB).
ByBit uses cold storage for assets, but it's not clear what percentage of funds are held in cold storage. They offer two-factor authentication for additional account security. However, detailed information about their security infrastructure is lacking.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
Bitbuy is an industry leader in Canadian regulatory adherence and compliance. In addition to being a Virtual Asset Service Provider and registered Money Service Business with FINTRAC, Bitbuy’s leadership team is a member of the IIROC Crypto-Asset Working Group, which helps to set high-quality regulatory standards and strengthen Canadian markets.
ByBit faced issues with the Ontario Securities Commission and, as a result, stopped operating in Ontario after paying a $2.5M fine. The exchange is not currently fully compliant in Ontario.
Bitbuy is fully compliant with Canadian federal laws and is regulated as an MSB by FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This means Bitbuy is obliged to report certain types of transactions to prevent illegal activities like money laundering.
Customer support
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 has FAQs and a knowledge centre on their website. They make it easy to submit a support ticket but the reply might take a while.
Bitbuy offers extensive support, with a comprehensive support page and an online form for queries. They also provide support via email. Customer reviews suggest that the response time is fairly quick. ByBit also provides a robust support system with numerous guides and the ability to create a ticket for queries. However, it has a lower rating on Trustpilot, with some users claiming issues with withdrawals.
Conclusion
Although both Bitbuy and ByBit have their unique strengths and offerings, ByBit takes the lead in this comparison for several reasons. First, ByBit offers a larger variety of cryptocurrencies, which is a significant advantage for traders interested in altcoins. It also provides more sophisticated tools for experienced traders, including futures and margin trading. While ByBit's compliance issues in Ontario are a concern, its global reach and immense user base show its overall reliability and acceptance. Its mobile app also has higher ratings compared to Bitbuy, indicating a more satisfying user experience on portable devices. Moreover, ByBit's lack of mandatory verification for trading can be seen as a benefit for those who value privacy. Yet, it also offers the option for users to increase their withdrawal limits through verification, thereby catering to the needs of different traders. Lastly, the low trading fees on ByBit make it a more cost-effective choice for active traders. While it may not be the ideal platform for Canadians wishing to buy crypto with fiat currencies directly, its P2P marketplace provides a workaround for this limitation. In essence, for traders prioritizing a wide range of cryptocurrencies, advanced trading tools, and lower fees, ByBit stands out as the more attractive choice.
Initially, we recommended choosing ByBit over Bitbuy for your cryptocurrency trading needs. However, Bybit has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Bybit over Bitbuy.
f you find that neither ByBit nor Bitbuy 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.
