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.
Since April 2025, VirgoCX operates as a non-custodial platform, meaning it never holds your crypto. The coins you buy are delivered to your own wallet, so there is no pool of customer funds on the exchange for hackers to steal. This replaces the old model, where assets were held in cold storage with third-party custody and covered by crime insurance. The new approach is actually closer to what we always recommend anyway: holding your own coins in your own Canadian crypto wallet. Fiat balances are held with Canadian banking partners.
ByBit places heavy emphasis on security, employing multiple measures like two-factor authentication, cold storage, and withdrawal whitelisting. However, specific details about insurance are not readily available.
VirgoCX offers robust security measures including two-factor authentication and holds the majority of its assets in cold storage. It also provides $1 million in crime insurance coverage with Coinbase Custody, assuring its users' funds' safety.
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.
VirgoCX is registered with FINTRAC as a money services business (MSB M19955733) and appears on the Canadian Securities Administrators' list of crypto platforms authorized to do business with Canadians, so it is fully legal in Canada. It originally registered as a restricted securities dealer in 2022 but did not complete CIRO investment dealer registration, which is why it pivoted to the non-custodial model in April 2025.
ByBit faced some issues with Canadian regulators, particularly with the Ontario Securities Commission (OSC), due to the derivatives products it offers.
As a Canadian-based exchange, VirgoCX is fully compliant with Canadian laws and regulations. It's registered with FINTRAC and PIPEDA and undergoes regular audits to ensure transparency and adherence to these regulatory standards.
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.
If you need help, you can contact VirgoCX's support team via email or live chat, and they offer multi-language support. Not many exchanges offer live chat.
ByBit offers 24/7 customer support through live chat and email, with a dedicated team providing quick and professional help. However, there is a room for improvement as per the customer reviews.
VirgoCX's support team is also available 24/7 through email and live chat, offering multi-language support. The general feedback from users points to an efficient and helpful support service.
Conclusion
Both ByBit and VirgoCX present strong offerings as crypto exchanges. VirgoCX's user-friendly interface, regulatory compliance, and security measures make it an appealing choice for Canadian users, especially beginners. However, ByBit's sophisticated platform, wide array of trading options, and its commitment to improving its regulatory standing, places it ahead in this comparison. The final decision might depend on an individual's specific needs and level of trading expertise.
Initially, we recommended choosing ByBit over VirgoCX 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 VirgoCX.
If you find that neither ByBit 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.
