Kucoin vs BitMEX: What Works Better For Canadians?

Security Compliance

Kucoin provides world-class security meaning your coins are in relatively safe hands. It has two-factor authentication, so you can prevent unauthorized access to your account.

Keep in mind, $275 million worth of crypto was stolen from Kucoin by North Korean hackers in 2020. Later, $200 million of the stolen funds was recovered. Still, it doesn’t bode well for Kucoin. If you have funds on the exchange, it’s best to move them to a private crypto wallet. 

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. 

In 2020, $275 million worth of crypto was stolen from Kucoin by North Korean hackers. Later, $200 million of the stolen funds was recovered. Still, it doesn’t bode well for Kucoin. If you have funds on the exchange, it’s best to move them to a private crypto wallet. 

There is very little information on Kucoin’s website regarding its security measures, so trade with care. You can, however, set up Google Authenticator for two-factor authentication. 

BitMEX offers slightly more information on its website, 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. 

Regulatory Compliance

In June, 2021, the Ontario Securities Commission stated that Kucoin was illegally offering its residents securities and derivatives trading, but Kucoin did not respond to this. As a result, Kucoin is still available in Ontario as well as the rest of Canada. You can use Kucoin at full capacity whether it’s a simple buy order at market price or a more advanced order type. Bear in mind, Kucoin does not allow Interac e-Transfer to deposit Canadian dollars to your account. Instead, you will have to use a debit or credit card or a SWIFT transfer with USD.

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. 

To sign up and start trading on Kucoin you only need to provide your email address. There is a daily limit to how much you can withdraw (1 BTC or 400 CAD) but you do not need to verify your account unless you want to get higher withdrawal limits. This poses the question how compliant Kucoin is. It is not easy to find compliance information on Kucoin’s website, but a press release from June, 2020 announced Kucoin was partnering with Chainalysis to help prevent money laundering and fraud on its platform. 

In June, 2021, the Ontario Securities Commission stated that Kucoin was illegally offering its residents securities and derivatives trading, but Kucoin did not respond to this. Binance faced the same allegation and has since ceased operations in Ontario.

BitMEX also 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 Kucoin and BitMEX safely, trade at your own risk and be aware that they could both cease trading in Canada due to regulations. 

Customer support

Kucoin offers helpful FAQs and online ticketing service for their customers as well as 24/7 support and a live chat option.

BitMEX offers support via a contact form on their website and has a detailed FAQ section as well. 

Kucoin has 24/7 customer support available by email or their website ticketing service. It also has a helpful FAQ section on its website. BitMEX offers support via a contact form on their website and has a detailed FAQ section as well. 

Conclusion

Both Kucoin and BitMEX offer derivatives trading which puts both platforms in a grey area when it comes to compliance. If you overlook that, BitMEX is the winner when it comes to futures and perpetual contracts trading whereas Kucoin is the winner when it comes to trading crypto to crypto. BitMEX has slightly lower trading fees, but Kucoin offers hundreds of cryptocurrencies and trading pairs (sign up for Kucoin here). You can only deposit USDT or BTC on BitMEX whereas with Kucoin you can purchase USDT with your credit or debit card. Keep in mind that Kucoin has been hacked in the past whereas BitMEX seems to offer more advanced security. If you’re only looking to trade contracts then BitMEX is the better choice as that type of trading is their main focus (sign up for BitMEX here).