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.
Coinbase uses its own digital wallet for storing your cryptocurrency.
Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.
Both exchanges take security very seriously. ByBit uses a hierarchical deterministic cold wallet system that stores nearly all of the crypto assets offline, minimizing the risk of hacking. They also use multiple technical measures like two-factor authentication, encryption, and real-time monitoring of their systems.
Contrastingly, Coinbase safeguards 98% of its users' assets by keeping them in cold storage, a method involving offline secure locations. As a publicly traded company in the U.S., it is fully regulated and must maintain a high level of transparency with its shareholders.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
Both ByBit and Coinbase are notable players in the cryptocurrency exchange market, but their compliance status in Canada significantly differs. ByBit, primarily designed for experienced traders, has recently come under the scrutiny of Canadian regulators. In a notable case this year, the Ontario Securities Commission (OSC), the statutory body responsible for regulating the capital markets in Ontario, accused ByBit of selling unlicensed securities to Ontario residents. As a result, ByBit was slapped with a hefty $2.5 million fine and was subsequently forced to restrict new account sign-ups from Ontario residents. This incident underscores the potential regulatory risks that Canadian ByBit users might face, particularly if other provincial regulators follow the OSC's lead. In contrast, Coinbase operates under stricter regulatory oversight, given its status as a US-based publicly listed company. It is registered as a Money Services Business with FinCEN, a U.S. government agency, and its operations are in accordance with US 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.
Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.
Both ByBit and Coinbase are committed to providing round-the-clock customer support. ByBit caters to a global audience with its multilingual 24/7 live chat and email support, demonstrating a notable focus on customer service. On the other hand, Coinbase provides customer assistance through multiple channels - email, live chat, and phone, available 24/7. Despite this, Coinbase has faced criticism due to an apparent lag in response times and perceived inadequacies in their support responses, according to several customer feedback.
Conclusion
While both exchanges have their merits, for Canadians, ByBit may be a better option. While Coinbase's user-friendly platform and high liquidity make it a strong contender, its relatively high fees, buying limits for Canadians, and noted customer service issues make it less appealing compared to ByBit. ByBit also offers a wider range of crypto derivatives and features like mutual insurance which are unique to its platform.
Initially, we recommended choosing ByBit over Coinbase 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 Coinbase.
If you find that neither ByBit nor Coinbase 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.
