Security Compliance
ByBit's security record now carries a major asterisk. In February 2025, attackers linked to North Korea's Lazarus Group exploited ByBit's multi-signature wallet transfer process and stole roughly $1.5 billion in Ethereum, the largest crypto theft ever recorded. To ByBit's credit, no customers lost funds: the exchange covered all losses from its own liquidity and replenished reserves within about 72 hours, a crisis response widely considered the best the industry has seen. Still, the breach shows that even cold storage and multisig setups can be defeated. Users can secure their accounts with two-factor authentication via Google Authenticator. ByBit also previously ran into trouble in Canada specifically, paying a roughly $2.5 million penalty to the Ontario Securities Commission in 2022 for operating without registration.
Coinbase keeps around 98% of customer crypto in cold storage with multi-signature wallets, making theft extremely difficult even if systems are compromised, and backs custodied assets with substantial crime insurance. It undergoes SOC 1 and SOC 2 audits and, as a public company, publishes quarterly audited financials, a level of transparency almost no competitor matches. Note that Coinbase also offers the separate, non-custodial Coinbase Wallet app for self-custody, which is distinct from holding coins on the exchange.
Both exchanges take security very seriously. ByBit uses a hierarchical deterministic cold wallet system that stores nearly all of the crypto assets offline, minimizing the risk of hacking. They also use multiple technical measures like two-factor authentication, encryption, and real-time monitoring of their systems.
Contrastingly, Coinbase safeguards 98% of its users' assets by keeping them in cold storage, a method involving offline secure locations. As a publicly traded company in the U.S., it is fully regulated and must maintain a high level of transparency with its shareholders.
Regulatory Compliance
ByBit exited the Canadian market in 2023 due to Canadian regulations and Canada remains on its restricted jurisdictions list. Notably, ByBit has since obtained licenses elsewhere, including a MiCA license serving the EEA through ByBit EU and a UK relaunch in late 2025, but it has shown no intention of registering with Canadian regulators.
Coinbase went from unregistered convenience to the most credentialed international platform in Canada: it signed an Enhanced Pre-Registration Undertaking in March 2023, formally launched with Interac rails in August 2023, and became a CSA-registered Restricted Dealer in April 2024, the first international exchange to achieve this. It's registered with FINTRAC as an MSB and authorized in Quebec by the AMF. Canadians can use the platform fully, with the standard restricted dealer caveats: certain altcoin purchase limits and no CIPF coverage on crypto.
Both ByBit and Coinbase are notable players in the cryptocurrency exchange market, but their compliance status in Canada significantly differs. ByBit, primarily designed for experienced traders, has recently come under the scrutiny of Canadian regulators. In a notable case this year, the Ontario Securities Commission (OSC), the statutory body responsible for regulating the capital markets in Ontario, accused ByBit of selling unlicensed securities to Ontario residents. As a result, ByBit was slapped with a hefty $2.5 million fine and was subsequently forced to restrict new account sign-ups from Ontario residents. This incident underscores the potential regulatory risks that Canadian ByBit users might face, particularly if other provincial regulators follow the OSC's lead. In contrast, Coinbase operates under stricter regulatory oversight, given its status as a US-based publicly listed company. It is registered as a Money Services Business with FinCEN, a U.S. government agency, and its operations are in accordance with US laws and regulations.
Customer support
ByBit has a helpful support centre on its website with numerous guides about crypto and how to use the exchange, plus ticket-based and chat support. For Canadians this is academic, since the platform is off-limits entirely.
Coinbase offers 24/7 support with live chat, a comprehensive help centre and an extensive learning hub. Support quality remains its weak spot: reaching a human who understands Canadian banking specifics can take patience, and our own test took four days to get a real person. For routine issues the automated help works fine, but complex account problems can drag.
Both ByBit and Coinbase are committed to providing round-the-clock customer support. ByBit caters to a global audience with its multilingual 24/7 live chat and email support, demonstrating a notable focus on customer service. On the other hand, Coinbase provides customer assistance through multiple channels - email, live chat, and phone, available 24/7. Despite this, Coinbase has faced criticism due to an apparent lag in response times and perceived inadequacies in their support responses, according to several customer feedback.
Conclusion
While both exchanges have their merits, for Canadians, ByBit may be a better option. While Coinbase's user-friendly platform and high liquidity make it a strong contender, its relatively high fees, buying limits for Canadians, and noted customer service issues make it less appealing compared to ByBit. ByBit also offers a wider range of crypto derivatives and features like mutual insurance which are unique to its platform.
Initially, we recommended choosing ByBit over Coinbase for your cryptocurrency trading needs. However, Bybit has announced its exit from the Canadian market on 30 September 2023, citing regulatory uncertainties. As a result, we can't recommend Bybit over Coinbase.
If you find that neither ByBit nor Coinbase 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.
