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.
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 ByBit and BitMEX have a strong focus on security. ByBit uses cold storage for assets and offers two-factor authentication, though detailed information about its security measures is not explicitly provided. BitMEX, on the other hand, utilizes a multilevel security system, including multi-signature deposits and withdrawals, offline storage, and employee access requiring multiple form factors. Since its launch in 2014, BitMEX has not suffered any major security breaches, underscoring its robust security protocols.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
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.
In terms of regulatory compliance in Canada, both ByBit and BitMEX have encountered challenges with the Ontario Securities Commission. ByBit announced its decision to exit the Canadian market entirely by October 2023, while BitMEX does not offer its services to residents of Ontario due to regulatory constraints. For the rest of Canada, both platforms can be accessed, but users must ensure compliance with local laws and regulations.
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.
BitMEX offers support via a contact form on their website and has a detailed FAQ section as well.
ByBit offers a comprehensive support center on its website with numerous guides and a ticketing system for user queries. In contrast, BitMEX provides customer support via email and a detailed FAQ section on its website. Both platforms strive to respond to customer inquiries in a timely manner.
Conclusion
Both ByBit and BitMEX are reputable exchanges offering a variety of features for cryptocurrency traders. However, given ByBit's broader range of cryptocurrencies, user-friendly features, and availability in more parts of Canada, ByBit emerges as the winner in this comparison. Its focus on user experience and versatile platform design make it a suitable choice for both beginner and experienced traders in Canada.
Initially, we recommended choosing ByBit over BitMEX 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 BitMEX.
If you find that neither ByBit 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.
