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.
To secure your Uphold account, you can enable two-factor authentication.
Uphold trading platform utilizes cold storage for your safety.
ByBit has a strong security record and uses industry-standard protocols including two-factor authentication, and withdrawal whitelisting. Uphold also allows for two-factor authentication but details on its technological security measures are less clear. It's worth mentioning, however, that both exchanges recommend users to move their assets to personal wallets for the highest security.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
Uphold is fully regulated in the USA. They are compliant with the Office of Foreign Assets Control (OFAC) and record keeping regulations with the Bank Secrecy Act (BSA). It's Canadian-friendly as well.
In terms of regulatory compliance within Canada, there are crucial differences between the two platforms. Uphold, as a registered money services business in the United States, adheres to several compliance regulations including those of the Office of Foreign Assets Control (OFAC). For Canadian users, it is important to note that Uphold's status within Canadian jurisdiction is not as explicitly defined, but it operates in compliance with the international regulations that would apply.
ByBit's standing with Canadian regulatory bodies is more nuanced. The Ontario Securities Commission (OSC), one of the main financial regulators in the country, has previously raised concerns about ByBit's operations. The OSC, responsible for regulating capital markets in Ontario, has publicly stated that ByBit has been operating without the necessary approvals or exemptions, a reminder of the rigorous regulatory landscape in Canada. However, it is crucial to note that these stances may change over time, and traders should stay updated with the latest information.
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.
Uphold has good reviews about their customer service teams. They offer help centres on their website and within the app.
You can contact Uphold’s customer support via their online ticketing system on their website.
ByBit offers 24/7 live chat, email, and social media channels for support, earning high praise for its responsiveness. Uphold's customer support, accessible via an online ticketing system, has been described as helpful and responsive. They also provide an extensive FAQ section and educational resources.
Conclusion
While both exchanges are suitable depending on the user's needs, ByBit edges out as the winner in this comparison. Despite Uphold's diversified asset offerings, ByBit stands out due to its specialized service in crypto derivatives trading, superior mobile app ratings, robust security measures, and excellent customer support. However, Canadian users should consider the regulatory status of ByBit in Canada before proceeding.
Initially, we recommended choosing ByBit over Uphold 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 Uphold.
If you find that neither ByBit nor Uphold 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.
