Security Compliance
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.
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.
Coinbase, being a NASDAQ-listed company, adheres to stringent security protocols, with 98% of assets stored in cold storage. VirgoCX, while not as globally recognized, also follows robust security measures, offering cold storage, SSL encryption, and 2FA. However, Coinbase's public company status offers an additional layer of regulatory oversight, adding a level of trust and safety.
Regulatory Compliance
Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.
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.
Coinbase, despite being U.S.-based, adheres to Canadian laws and regulations for its Canadian operations. On the other hand, VirgoCX is a Canadian company and is MSB-licensed by FINTRAC, ensuring compliance with Canadian federal regulations. Both are subject to oversight from Canadian federal bodies, albeit to differing extents due to their differing origins.
Customer support
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.
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.
Coinbase's customer support has drawn criticism for delays and unresponsiveness. Despite implementing 24/7 phone support, there's room for improvement. VirgoCX offers a more satisfactory customer service experience, with a responsive live chat feature and a comprehensive FAQ section.
Conclusion
Despite VirgoCX's strong showing as a Canadian-focused exchange, Coinbase emerges victorious. Its established reputation, superior security measures, and seamless user experience outweigh its relatively higher fees and less responsive customer service.
We recommend choosing Coinbase over VirgoCX for your cryptocurrency trading needs. By opting for Coinbase through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Coinbase 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.
