Phemex Stakes Its Security Claim at LONGITUDE — A Six-Year Milestone and a Bet on Safer Crypto

Phemex marks its birthday with a public pledge to make crypto safer

Phemex celebrated its sixth anniversary at LONGITUDE in Abu Dhabi by making security the headline. The exchange helped run the conference alongside Cointelegraph and used the stage to show new custody tools, insurance ideas and audit commitments. The presentation was meant to send a clear signal: after years of hacks and market shocks, Phemex wants users and institutions to know it treats safety as mission-critical.

What happened in Abu Dhabi: the LONGITUDE format, partners and audience

LONGITUDE was a multi-day conference that drew traders, fund managers, regulators and technology firms. Cointelegraph helped organize panels and anchor media coverage. Phemex’s team led sessions on exchange security, hosted demonstrations, and took part in panels that included crypto custodians and compliance officers.

The audience mixed institutional and retail players. There were panels on custody solutions, compliance roadmaps and the practical hurdles for moving large sums of crypto safely. Phemex staged technical demos during the show and opened doors for one-on-one briefings with potential partners and large traders who said they wanted clearer assurances before shifting capital.

What Phemex announced: custody, audits, insurance and new tech

Phemex outlined several security moves it says will reduce the odds of a major loss. The list included plans for more frequent third-party audits, expanded bug-bounty rewards, and a promise to roll out multi-party computation (MPC) for custody — a cryptographic method that splits control of funds across systems rather than keeping a single hot-wallet key.

The company also described work on an insurance framework to cover user losses. Phemex was careful to say this would be a layered solution: an internal reserve, third-party policies and a potential industry pool. Executives showed demos of their custody stack and a roadmap with staged rollouts rather than a single launch date. They offered timelines for audits and bug-bounty increases but stopped short of publishing detailed coverage limits or named insurers at the event.

How this could change the market: trust, liquidity and competitive position

If Phemex delivers, it can win two things investors care about: more deposits and steadier trading volumes. Better custody and explicit insurance reduce the perceived risk for large traders and funds, which can mean higher liquidity and tighter spreads. That would also allow Phemex to push for more listings and enter markets where institutional players demand stronger custody controls.

On the competitive front, the move aims to narrow the gap with public exchanges that tout compliance and protections — for example Coinbase (COIN) — while differentiating Phemex on service and fees. But promises alone won’t flip flows. Traders vote with deposits. The practical effects will show up slowly as auditors sign off, insurers underwrite, and counterparties test the systems in real conditions.

Onstage words and the room’s verdict

“Security isn’t an add-on; it’s the product,” a Phemex executive told the audience, underscoring the company’s shift in messaging. Cointelegraph representatives praised the public demos as a step toward transparency. Several attendees described the demonstrations as professionally run but flagged missing specifics on insurance caps and exact audit findings.

An independent security consultant who reviewed the demos said they were credible but cautioned that many exchanges promise similar upgrades. “The proof comes from independent audit reports, named insurers and live stress tests,” the consultant said. “Until those appear, treat announcements as progress reports, not guarantees.”

Where Phemex stands now and what to watch next

Phemex arrives at this anniversary with six years of operating history and a business built on leveraged trading and derivatives. The LONGITUDE announcements tighten the company’s message: safety first. For investors and market-watchers, the coming weeks should reveal whether independent auditors sign off, whether insurers commit with clear limits, and whether large traders start moving meaningful capital to Phemex’s books. Those milestones will decide if the announcements were a turning point or just marketing noise.

Sources

• prnewswire.com