Security Compliance
ByBit is lacking in information about its security. ByBit uses cold storage for assets but it’s not clear what percentage of funds are held in cold storage.
For users that want to secure their account, they can set up two-factor authentication using Google Authenticator. Users will need to open this app and enter the code whenever they wish to withdraw from their ByBit account.
This year the Ontario Securities commission (OSC) accused ByBit of selling unlicensed securities to residents of Ontario. ByBit paid a $2.5M fine and has since restricted new account sign-ups from residents of Ontario.
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).
In a recent update, ByBit has announced its decision to exit the Canadian market by October 2023 due to Canadain regualtions.
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. You can also create a ticket on the website if you need to contact support. The chat support helped me within an hour and I had an issue with the withdrawal of TONCOIN.
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.
