Platform Rebuild and Security Overhaul Enable NEM Token Relaunch
Japanese cryptocurrency exchange Coincheck has restored NEM (XEM) trading following a complete platform rebuild by external security experts. This marks a significant milestone in the exchange's recovery from January's record-breaking hack that resulted in the theft of $534 million worth of NEM tokens.
👉 Discover how top exchanges enhance security post-hack
Key Developments in Coincheck's Comeback:
- External security audit validating technical safety for NEM, ETH, and LSK transactions
- Membership in three industry associations: Japan Security Association (JSA), Japan Network Security Association (JNSA), and Japan Virtual Currency Exchange Association (JVCEA)
- New ownership under Monex Group Inc. since April 2018
Timeline of Critical Events
| Date | Event | Impact |
|---|---|---|
| January 2018 | Massive NEM token theft | $534M loss, platform shutdown |
| March 2018 | FSA compliance orders | Mandated management overhaul |
| April 2018 | Monex Group acquisition | Leadership and policy changes |
| October 2018 | Partial trading relaunch | BTC/ETC/LTC/BCH only |
| November 2018 | Full NEM trading restoration | Complete platform recovery |
Regulatory Response and Industry Changes
The JVCEA emerged as a direct response to the Coincheck incident, establishing self-regulatory guidelines for Japanese exchanges. Their focus includes:
- Client asset protection protocols
- AML/CFT compliance enforcement
- Risk assessment standardization across all listed cryptocurrencies
👉 Learn about Japan's evolving crypto regulations
Market Response and Trading Performance
Following the relaunch announcement:
- NEM prices surged 6.18% within 24 hours
- Current trading value: ~$0.11/XEM
- Platform now supports ETH and LSK alongside NEM
Frequently Asked Questions
Q: Is Coincheck safe to use now?
A: The exchange has implemented rigorous security measures and passed external audits, though users should always practice personal security protocols.
Q: What cryptocurrencies can I trade on Coincheck?
A: Currently BTC, ETC, LTC, BCH, ETH, LSK, and NEM—with more expected as compliance verification completes.
Q: How has ownership changed since the hack?
A: Monex Group acquired Coincheck and installed new management to ensure regulatory compliance and operational transparency.
Q: What protections exist against future hacks?
A: Multi-association memberships require ongoing security audits and adherence to Japan's strict financial standards.
Future Outlook for Recovered Exchanges
Coincheck's experience demonstrates how proper restructuring can restore trust after security failures. The exchange now serves as a case study in:
- Post-crisis management
- Regulatory collaboration
- Technical infrastructure hardening
Industry observers note this recovery model may become standard for hacked exchanges seeking to regain market position while complying with evolving global standards.