In a significant move signaling recovery and renewed confidence, Japanese cryptocurrency exchange Coincheck has officially resumed trading for NEM (XEM) tokens. This milestone follows a comprehensive platform overhaul led by external security experts after the exchange suffered one of the most notorious cyberattacks in crypto history earlier in 2018.
The relaunch marks a pivotal chapter in Coincheck’s transformation, emphasizing enhanced security protocols, regulatory compliance, and strategic restructuring under new ownership. As one of Japan’s most prominent digital asset platforms, this development is closely watched by investors, regulators, and the broader blockchain community.
Recovery Efforts and Security Reinforcement
Following the January 2018 hack that resulted in the theft of approximately 534 million XEM tokens—valued at around $534 million at the time—Coincheck took immediate steps to rebuild trust and strengthen its infrastructure.
The exchange partnered with third-party cybersecurity specialists to conduct a full audit and redesign of its systems. These efforts focused on upgrading wallet security, implementing multi-signature authentication, and migrating high-value assets to cold storage solutions. As part of its commitment to transparency and safety, Coincheck also joined the Japan Security Association (JSA), reinforcing its alignment with national cybersecurity standards.
"Through collaboration with external experts, we have verified the technical security of our XEM, ETH, and LSK trading systems," the exchange stated.
In addition to internal upgrades, Coincheck became a member of both the Japan Cybersecurity Association (JNSA) and the Japan Virtual Currency Exchange Association (JVCEA)—a self-regulatory body established in April 2018 in direct response to the breach. The JVCEA sets industry-wide guidelines for customer asset protection, anti-money laundering (AML), and counter-terrorism financing (CFT) practices.
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Regulatory Scrutiny and Operational Overhaul
After the attack, Japan’s Financial Services Agency (FSA) issued a business improvement order to Coincheck on March 8, 2018. The directive required sweeping reforms, including:
- Strengthening internal management systems
- Enhancing AML/CFT compliance procedures
- Revising risk assessment frameworks for listed cryptocurrencies
These mandates were not only critical for regaining regulatory trust but also served as a blueprint for modernizing the platform’s operational model.
Later that year, in April 2018, Monex Group Inc., a major Japanese internet brokerage firm, acquired Coincheck. This acquisition brought institutional oversight, financial stability, and a clear roadmap for revitalization. Monex emphasized its commitment to standardizing operations and aligning Coincheck with global best practices in fintech security and user protection.
Despite a reported 66% drop in Q3 2018 revenue post-acquisition—a reflection of reduced trading activity during recovery—Monex expressed confidence in Coincheck’s long-term potential.
Relaunching Services: From Limited Access to Full Trading
Coincheck began its phased reopening in October 2018 by allowing new user registrations and resuming deposits and withdrawals for select cryptocurrencies, including:
- Bitcoin (BTC)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
This gradual approach allowed the team to monitor system performance and ensure stability before reintroducing more complex features.
Now, with the resumption of NEM (XEM) trading—alongside Ethereum (ETH) and Lisk (LSK)—the platform signals full operational recovery. The decision to reinstate XEM is particularly symbolic, given it was the primary asset compromised during the hack.
Market data from CoinMarketCap shows that within 24 hours of the announcement, XEM trading volume surged by 6.18%, with the token stabilizing around $0.11 per unit—a positive indicator of renewed market interest.
Core Keywords and Market Implications
This event underscores several key themes relevant to investors and crypto enthusiasts:
- Cryptocurrency exchange security remains a top concern following high-profile breaches.
- Regulatory oversight in Japan continues to shape exchange operations across Asia.
- Investor trust can be rebuilt through transparency, expert collaboration, and institutional backing.
- NEM (XEM) re-listing highlights resilience in blockchain ecosystems despite setbacks.
These keywords—Coincheck, NEM, XEM, cryptocurrency exchange, hacking incident, security upgrade, Monex Group, and Japan FSA—reflect central topics driving search interest around this story.
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Frequently Asked Questions
Q: Why did Coincheck stop trading NEM in the first place?
A: Trading was suspended after hackers stole 534 million XEM tokens from Coincheck’s hot wallet in January 2018. The exchange halted all NEM-related activities until security improvements were completed.
Q: Is it safe to trade on Coincheck now?
A: Yes. The platform has undergone extensive security audits, joined regulatory associations like JVCEA, and implemented stronger wallet protections under Monex Group’s ownership.
Q: Did users get reimbursed after the hack?
A: Yes. Coincheck compensated affected users using company funds, reimbursing them in Japanese yen based on the value of lost assets at the time of the breach.
Q: What is JVCEA and why does it matter?
A: The Japan Virtual Currency Exchange Association is a self-regulatory organization formed to enforce rules on customer protection, AML compliance, and operational transparency among Japanese crypto exchanges.
Q: Who owns Coincheck now?
A: Coincheck is currently owned by Monex Group Inc., a publicly traded Japanese financial services company that acquired it in April 2018.
Q: How did the market react to NEM trading resuming?
A: XEM saw a 6.18% increase in trading volume within 24 hours of the announcement, indicating renewed investor confidence in both the token and the exchange.
Looking Ahead: Rebuilding Trust in Digital Finance
Coincheck’s journey from crisis to recovery serves as a case study in resilience within the fast-evolving cryptocurrency sector. Its successful relaunch demonstrates that even after a devastating breach, exchanges can regain credibility through accountability, regulatory cooperation, and technological upgrades.
As digital asset adoption grows globally, platforms must prioritize security not just as a technical requirement—but as a foundation for trust.
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With institutional support from Monex, membership in key regulatory bodies, and restored trading capabilities, Coincheck is positioning itself not just as a survivor—but as a reformed player in Japan’s regulated crypto ecosystem.