Security Compliance
NDAX keeps its digital assets in cold storage using Ledger Vault, although they do not state the percentage. Ledger is a big name in the cryptocurrency space, known for making secure hardware wallets.
When signing up to NDAX, you are forced to enable two-factor authentication. Most crypto exchanges will leave this optional, but we think everybody should do it, so we like this mandatory policy.
Additionally, when you wish to change your details such as your email, address, phone number etc, NDAX requires you to submit a selfie with a handwritten note outlining the request.
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.
NDAX stands out for its robust security measures. It uses cold storage through Ledger Vault for digital assets, and all user funds in fiat currency are kept in segregated Canadian bank accounts. BitMEX also places a strong emphasis on security with multi-signature deposits and withdrawals. However, exact details on how they store their digital assets are less transparent compared to NDAX.
Regulatory Compliance
NDAX is registered as a Money Service Business with FINTRAC and AMF, NDAX is fully compliant with Canadian regulations.
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.
NDAX is fully compliant with Canadian regulations, registered as a Money Service Business with FINTRAC and AMF. This adherence to regulations ensures the legitimacy and safety of the exchange. On the other hand, BitMEX, while compliant with laws in its jurisdiction, may not align with Canadian regulations in Ontario and Quebec, thus creating potential legal uncertainties for Canadian users.
Customer support
NDAX provides a knowledge centre on its website. Articles here answer some of the most common questions. They also have a live chat function, which is handy when you need a quick answer. You can also email them for support. Confusingly, NDAX lists its phone number on its contact page, which is rare for a crypto exchange to do. We weren’t sure if this meant they had phone support, so we reached out via email to ask. They got back to us a very impressive 20 minutes later to let us know that they only have email support. So that’s that. Still, that’s the fastest response we’ve seen.
BitMEX offers support via a contact form on their website and has a detailed FAQ section as well.
NDAX provides an extensive knowledge center and has a live chat option for quick responses. It also offers email support, with an impressive response time. BitMEX also has a comprehensive help center and offers email support, but it lacks the live chat feature available in NDAX.
Conclusion
Both NDAX and BitMEX offer robust platforms for cryptocurrency trading. However, considering the emphasis on security, compliance with Canadian regulations, higher application ratings, and better client support, NDAX emerges as the winner for Canadian users in this comparison.
We recommend choosing NDAX over BitMEX for your cryptocurrency trading needs. By opting for NDAX through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither NDAX nor BitMEX 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.
