Security Compliance
It is standard practice to hold most digital assets in third-party cold storage and Bitvo is no exception. It holds 95% of assets in cold storage and 5% in hot storage.
Customers’ fiat funds are held in segregated bank accounts and they also have multi-layered firewall infrastructure to protect the exchange. They also have a third-party that screens any cryptocurrencies looking to be listed on Bitvo. They analyze the coin’s history as well as other factors and don’t list anything that doesn’t align with their policies. This scrutiny helps to protect their customers from investing in scam coins.
BitMEX is stating that it utilizes cold storage for all of the bitcoin funds. BitMEX also uses multi-signatures wallets and every bitcoin withdrawal is audited by hand by at least two BitMEX employees. All bitcoin deposit addresses sent by BitMEX are externally verified to ensure the keys match those of the founders. If they do not match, BitMEX will shut down and halt trading.
Both Bitvo and BitMEX prioritize user security. Bitvo holds 95% to 100% of its assets in cold storage, with customer fiat funds kept in segregated bank accounts. They also use multi-layered firewall infrastructure and screen any cryptocurrencies looking to be listed on their platform. On the other hand, BitMEX employs a multilevel security system with multi-signature deposits and withdrawal schemes. All BitMEX addresses are multisignature by default, and all storage is kept offline. While both exchanges have robust security measures in place, Bitvo's practice of thoroughly vetting coins before listing adds an extra layer of security for its users.
Regulatory Compliance
Bitvo is registered with FINTRAC and is compliant with Canadian regulations.
BitMEX withdrew operations in Ontario, but was not officially named by the OSC. BitMEX is still operational in other Canadian provinces but it is facing legal trouble with the USA due to allegedly offering securities trading illegally.
While you can use BitMEX safely, trade at your own risk and be aware that they could cease trading in Canada due to regulations.
Bitvo is a registered Money Service Business in Canada, fully compliant with FINTRAC regulations. BitMEX has faced regulatory issues, with services unavailable to residents of Ontario and Quebec, Canada. Therefore, Bitvo is a clear winner in terms of regulatory compliance in Canada, as it operates in full compliance with local laws and regulations, while BitMEX has limitations in certain provinces.
Customer support
Bitvo has 24/7 support including live chat, email, and phone support. Bitvo is the first cryptocurrency exchange we’ve reviewed that has a phone support option, so this is a big plus when you need urgent help.
BitMEX offers support via a contact form on their website and has a detailed FAQ section as well.
Bitvo offers round-the-clock support via live chat, email, and phone support, the last of which is quite rare among cryptocurrency exchanges. BitMEX, on the other hand, offers customer support via email and has a comprehensive FAQ and References section on their website. Here, Bitvo clearly has an advantage with its 24/7 customer service and multiple support channels.
Conclusion
While both Bitvo and BitMEX offer excellent platforms for cryptocurrency trading, Bitvo takes the crown for a few reasons. It provides a simpler and user-friendly platform ideal for beginners, adheres strictly to Canadian regulations, offers better customer support options, and has a stronger focus on user security. Thus, for these reasons, Bitvo is a preferable choice, especially for Canadian users in 2024.
We recommend choosing Bitvo over BitMEX for your cryptocurrency trading needs. By opting for Bitvo through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Bitvo nor BitMEX 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.
