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.
VirgoCX offers $1 Million in crime insurance coverage with Coinbase Custody. Should the exchange be compromised, VirgoCX could potentially refund any customers’ stolen coins.
VirgoCX’s crypto assets are held in cold storage with Coinbase Custody and only a small amount are kept on the platform for trading. All fiat assets are held with their Canadian banking partner, though it is not mentioned who the partner is. However, we always recommend transferring all the funds to your own Canadian crypto wallet.
ByBit places heavy emphasis on security, employing multiple measures like two-factor authentication, cold storage, and withdrawal whitelisting. However, specific details about insurance are not readily available.
VirgoCX offers robust security measures including two-factor authentication and holds the majority of its assets in cold storage. It also provides $1 million in crime insurance coverage with Coinbase Custody, assuring its users' funds' safety.
Regulatory Compliance
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
VirgoCX is registered with FINTRAC and PIPEDA. Therefore, it is fully compliant in Canada. VirgoCX also has regular audits which prove that its reserves exist.
ByBit faced some issues with Canadian regulators, particularly with the Ontario Securities Commission (OSC), due to the derivatives products it offers.
As a Canadian-based exchange, VirgoCX is fully compliant with Canadian laws and regulations. It's registered with FINTRAC and PIPEDA and undergoes regular audits to ensure transparency and adherence to these regulatory standards.
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.
If you need help, you can contact VirgoCX’s support team via email or live chat 24/7. They also offer multi-language support. Not many exchanges offer live chat.
ByBit offers 24/7 customer support through live chat and email, with a dedicated team providing quick and professional help. However, there is a room for improvement as per the customer reviews.
VirgoCX's support team is also available 24/7 through email and live chat, offering multi-language support. The general feedback from users points to an efficient and helpful support service.
Conclusion
Both ByBit and VirgoCX present strong offerings as crypto exchanges. VirgoCX's user-friendly interface, regulatory compliance, and security measures make it an appealing choice for Canadian users, especially beginners. However, ByBit's sophisticated platform, wide array of trading options, and its commitment to improving its regulatory standing, places it ahead in this comparison. The final decision might depend on an individual's specific needs and level of trading expertise.
Initially, we recommended choosing ByBit over VirgoCX 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 VirgoCX.
If you find that neither ByBit nor VirgoCX 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.
