Security Compliance
Newton holds 80% of client assets offline in custodial cold storage with Coinbase and the remaining 20% in hot wallets secured by Fireblocks, with crypto assets covered by an insurance policy. Customer data is stored on Canadian servers with daily offsite backups, and the platform is tested internally every month and externally every year for vulnerabilities. Mandatory two-factor authentication and direct bank integration round out fraud protection.
BitMEX's technical security record is genuinely strong: it has never been hacked, keeps all bitcoin in cold storage with multi-signature wallets, and has employees manually audit withdrawals. Its regulatory record is another matter. BitMEX and its founders pleaded guilty to violating the US Bank Secrecy Act for failing to run an anti-money-laundering program, the company was fined $100 million in January 2025, and its three co-founders were pardoned by President Trump in March 2025. Funds on the platform have historically been safe from hackers; the risk was always regulatory.
Newton complies with FINTRAC regulations in Canada, incorporates daily site backups, and facilitates bank account linkages for its customers. It also uses two-factor authentication. However, Newton does not disclose the percentage of digital assets stored in cold storage. BitMEX employs a multilevel security system, including multisignature deposits and withdrawals. All storage is kept offline, and BitMEX systems require multiple form factors for employee access. They also utilize Amazon Web Services for additional security.
Regulatory Compliance
Newton is regulated by the Canadian Securities Administrators, FINTRAC, and securities regulators in every province and territory, a major step up from its early days as a FINTRAC-only MSB. It was among the first Canadian exchanges to pursue securities registration, and its affiliation with DV Trading adds institutional market-making depth behind its pricing.
BitMEX initially restricted only Ontario and Québec, but as of late 2023 its Restricted Jurisdiction Policy lists all of Canada as restricted. Its US legal troubles have concluded with guilty pleas, a $100 million fine and subsequent presidential pardons for the founders. There is no indication BitMEX intends to register with Canadian regulators or return to the Canadian market.
Newton, being a Canadian exchange, is subject to Canadian federal regulations and compliance monitoring. It's registered as a Money Service Business with FINTRAC in Canada, suggesting compliance with local financial regulations. BitMEX, on the other hand, does not offer its services to residents of Ontario due to new regulatory frameworks. Other Canadian regions may access BitMEX, but users must ensure they comply with their local laws and regulations.
Customer support
Newton has FAQs and a knowledge centre on its website, with support handled through online tickets. There's no phone or live chat, and its middling Trustpilot score mostly reflects slow support and ID-verification frustrations rather than fund-safety issues. For simple buy-and-hold users the support model is adequate; anyone who values a human on demand should look at NDAX or Netcoins instead.
BitMEX offers support via a contact form on its website and has a detailed FAQ section. For Canadians this is academic, since the platform is off-limits entirely.
Newton provides a knowledge base on its website, and its support team can be reached by submitting a ticket. However, direct contact may require navigation through the site. BitMEX offers customer support through email and a ticketing system, along with an FAQ section and a "References" section with useful trading information.
Conclusion
While both Newton and BitMEX offer strong features, Newton comes out as the winner for Canadian traders, thanks to its no-fee model, user-friendly interface, compliance with Canadian regulations, and a broader range of cryptocurrency offerings. Although BitMEX has advanced trading features and robust security measures, its limited usability in certain Canadian regions due to regulatory issues puts Newton in a more favourable position.
When comparing Newton to BitMEX, one notable advantage is the Recurring Buys feature. This allows users to automate crypto purchases at regular intervals, making it easier to invest consistently over time. Additionally, Newton has partnered with Koinly, a leading crypto tax platform, simplifying tax reporting with seamless integration. These features are especially beneficial for users looking for a hands-off approach to crypto investing and tax management, giving Newton a distinct edge over many competitors that don’t offer these conveniences.
We recommend choosing Newton over BitMEX for your cryptocurrency trading needs. By opting for Newton through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.
If you find that neither Newton 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.
