Security Compliance
Shakepay hold users’ funds in cold storage, though they do not publicize the percentage. Shakepay has existed since 2015, and so far, never has been hacked.
Shakepay states on its website that digital assets are backed by an insurance policy, though it does not mention any details.
Shakepay also offers two-factor authentication (2FA) for their customers, so you can be sure no one else is accessing your account. With Shakepay, you will also need to confirm via email when withdrawing funds. If you set up 2FA for your email account, you can be pretty sure no unauthorized person is withdrawing funds from your account.
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.
Both exchanges emphasize security, but they differ in their methods. Shakepay claims insurance coverage for digital assets but does not detail the percentage held offline in cold storage. In contrast, BitMEX employs a multilevel security system, with multisignature addresses and all storage being kept offline. BitMEX has had no major security breaches, emphasizing its robust security measures.
Regulatory Compliance
Shakepay is regulated as a Money Service Business (MSB) by FINTRAC. Shakepay is based in Montreal and is allowed to operate in every Canadian province.
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.
Shakepay, licensed as a Money Service Business (MSB) by FINTRAC, is fully regulated in Canada, making it a secure choice for Canadian residents. On the other hand, BitMEX, due to regulatory issues, does not offer its services to residents of Ontario and Quebec, limiting its accessibility within Canada.
Customer support
Shakepay offers chat support, helpful FAQs and access to customer support via their website.
Shakepay claims it has “customer service that cares.” It offers a useful support section on its website that can answer some of the most common questions and you can contact support via email at help@shakepay.com. Shakepay claims that support tickets can be answered within hours, even on weekends. We reached out to the support team via email to see how quickly they would respond. We received a reply the next day, less than 24 hours later.
BitMEX offers support via a contact form on their website and has a detailed FAQ section as well.
Shakepay is known for its responsive customer service, responding within hours, even on weekends. BitMEX offers customer support through email with a comprehensive FAQ section on its website. However, some users might find the response times varying.
Conclusion
While both exchanges are commendable in their unique ways, the winner in this comparison is Shakepay. Its beginner-friendly interface, exclusive Bitcoin cashback Visa card, and full compliance with Canadian regulations make it an excellent choice for Canadians, especially those new to the crypto scene. Despite BitMEX's advanced trading features and strong security measures, its limited services in Canada and complexity for beginners make it a less favorable choice for Canadian users.
Shakepay distinguishes itself from BitMEX by emphasizing the security of its users' assets through cold storage backed by insurance. This secure offline storage method adds a significant layer of protection, particularly valuable for risk-conscious investors. While other exchanges may offer similar features, Shakepay's focus on insured cold storage ensures users can trust that their digital currencies are safeguarded against potential breaches, making it a solid choice for those prioritizing asset security
We recommend choosing Shakepay over BitMEX for your cryptocurrency trading needs. By opting for Shakepay through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Shakepay 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.
