Security Compliance
Newton does daily backups to minimize risk and states on its website that customer data is stored in Canada. They also perform daily site backups, have offline third-party storage for digital assets, and they allow their customers to directly connect their bank account to reduce fraud.
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.
Newton complies with FINTRAC regulations in Canada, incorporates daily site backups, and facilitates bank account linkages for its customers. It also uses two-factor authentication. However, Newton does not disclose the percentage of digital assets stored in cold storage. BitMEX employs a multilevel security system, including multisignature deposits and withdrawals. All storage is kept offline, and BitMEX systems require multiple form factors for employee access. They also utilize Amazon Web Services for additional security.
Regulatory Compliance
Newton is fully compliant with FINTRAC regulations in Canada.
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.
Newton, being a Canadian exchange, is subject to Canadian federal regulations and compliance monitoring. It's registered as a Money Service Business with FINTRAC in Canada, suggesting compliance with local financial regulations. BitMEX, on the other hand, does not offer its services to residents of Ontario due to new regulatory frameworks. Other Canadian regions may access BitMEX, but users must ensure they comply with their local laws and regulations.
Customer support
Newton has FAQs and a knowledge center on the website. Customers can message the support teams either online via their support pages or through email. Newton does not have a phone and live support.
BitMEX offers support via a contact form on their website and has a detailed FAQ section as well.
Newton provides a knowledge base on its website, and its support team can be reached by submitting a ticket. However, direct contact may require navigation through the site. BitMEX offers customer support through email and a ticketing system, along with an FAQ section and a "References" section with useful trading information.
Conclusion
While both Newton and BitMEX offer strong features, Newton comes out as the winner for Canadian traders, thanks to its no-fee model, user-friendly interface, compliance with Canadian regulations, and a broader range of cryptocurrency offerings. Although BitMEX has advanced trading features and robust security measures, its limited usability in certain Canadian regions due to regulatory issues puts Newton in a more favourable position.
When comparing Newton to BitMEX, one notable advantage is the Recurring Buys feature. This allows users to automate crypto purchases at regular intervals, making it easier to invest consistently over time. Additionally, Newton has partnered with Koinly, a leading crypto tax platform, simplifying tax reporting with seamless integration. These features are especially beneficial for users looking for a hands-off approach to crypto investing and tax management, giving Newton a distinct edge over many competitors that don’t offer these conveniences.
We recommend choosing Newton over BitMEX for your cryptocurrency trading needs. By opting for Newton through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Newton 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.
