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.
Coinsmart uses cold storage for its digital assets and mandates two-factor authentication for users. ByBit also uses cold storage but does not provide information about the percentage of funds held in cold storage. Both exchanges offer two-factor authentication, but ByBit's security features are less transparent than Coinsmart's.
Regulatory Compliance
Coinsmart is fully compliant in Canada. Not only the exchange is registered with FINTRAC but they are also granted status by Ontario Securities Commission (OSC).
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.
Coinsmart is fully compliant with Canadian regulations and is registered with FINTRAC. ByBit, on the other hand, faced issues with the Ontario Securities Commission and has since restricted new account sign-ups from Ontario residents. This makes Coinsmart a more compliant option for Canadians.
Customer support
CoinSmart states that it has a 97% customer satisfaction rate and this claim is backed up by the 70% excellent customer reviews on Trustpilot. CoinSmart offers 24/7 support via email and online ticketing.
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.
Coinsmart provides responsive customer support through live chat, email, and phone support. ByBit also offers a helpful support center on its website with guides and ticket support, but its live chat function has mixed reviews.
Conclusion
Both Coinsmart and ByBit have their advantages for Canadians, but Coinsmart is the winner due to its full compliance with Canadian regulations, more transparent security features, and responsive customer support. ByBit is a cheaper option with low trading fees and a wide range of coins, but its lack of CAD deposit options and compliance issues in Ontario make it a less appealing choice for Canadians.
We recommend choosing Coinsmart over ByBit for your cryptocurrency trading needs. By opting for Coinsmart through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
CoinSmart is now part of WonderFi and the platform is not accepting new signups. If you're looking for the best crypto experience in Canada, we recommend signing up to Bitbuy, another licensed Canadian cryptocurrency trading platform operated by the same parent company, WonderFi. With Bitbuy, you will get access to an improved experience on web and mobile, staking rewards, Private Wealth services, and an advanced trading interface. Sign up using our referral link and get free $50 when depositing $250 on your account!
If you find that neither Coinsmart nor ByBit 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.
