Kucoin vs VirgoCX: What Works Better For Canadians in 2024

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. 

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.

Kucoin's security infrastructure includes robust features, though there have been instances of security breaches in the past. Its security measures involve an in-house risk control department and a multilayer encryption approach.

Conversely, VirgoCX offers strong security measures with $1 Million in crime insurance coverage, held in cold storage with Coinbase Custody. A small amount of assets are kept on the platform for trading, and fiat assets are stored with their Canadian banking partner. However, the exchange doesn't specify who this partner is.

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.

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. 

Regulatory compliance differs significantly between the two exchanges. VirgoCX is a fully compliant Canadian exchange, registered with FINTRAC and PIPEDA, thereby conforming to Canadian federal laws and regulations.

Kucoin, on the other hand, faces restrictions in some parts of Canada, having been fined and banned from operating in Ontario due to non-compliance with the Ontario Securities Commission's 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.

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.

Kucoin provides 24/7 customer support via live chat and email. The platform is dedicated to customer service, despite some reports of delayed responses.

In contrast, VirgoCX’s support team can be contacted 24/7 via email or live chat, offering multi-language support. Not many exchanges provide live chat assistance.

Conclusion

Both exchanges provide a solid platform for crypto trading with reliable security measures and customer support. However, considering the factors of regulatory compliance in Canada, the diversity of advanced trading options, and favorable user feedback, Kucoin emerges as the preferred choice. Its non-compliance in Ontario should be taken into account, and individuals from this province should consider other options.

When comparing Kucoin to VirgoCX, KuCoin stands out for its enhanced transparency through the Proof of Reserves (PoR) system, which verifies that the platform can fully cover all user assets, reinforcing trust in its financial stability. Additionally, KuCoin has stepped up its game in customer service by offering 24/7 support, making it easier for users to get timely assistance compared to many other exchanges. This level of transparency and customer care makes KuCoin a strong contender among its competitors.

VirgoCX now boasts support for over 60 cryptocurrencies, giving Canadian traders a wider variety of options. The exchange has also introduced a tiered rewards program, allowing users to enjoy up to 90% off on spreads, making trading more affordable. Furthermore, VirgoCX enhances security by utilizing Coinbase Custody for safeguarding assets and offering insurance coverage. These updates make it a strong contender in the Canadian market, appealing to both novice and experienced traders when compared to other exchanges.

We recommend choosing Kucoin over VirgoCX for your cryptocurrency trading needs. By opting for Kucoin through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.

If you find that neither Kucoin 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.