A Japanese cryptocurrency girl band has said that it will remain loyal to digital currencies despite the hack at Coincheck which resulted in the loss of over $500 million worth of NEM, halting their chances of being paid.

Last Friday, it was reported that Japanese digital currency exchange Coincheck had halted services without any explanation. Shortly afterwards it was announced that the exchange had been hacked that saw $530 million worth of XEM, the token for the NEM network, being stolen. Coincheck has since vowed that they will reimburse 260,000 of its customers.

However, one of the accounts that was frozen was the account that paid part of girl group Virtual Currency Girls, reports the South China Morning Post. Yet, instead of turning to the yen the band have decided to stick with cryptocurrency.

Hinano Shirahama, who is the band’s bitcoin character, said:

Our manager offered to pay us in yen, but we declined.

The eight member girl group only debuted last month after being formed by an entertainment promoter. Despite not yet garnering a significant following, the group have said they will stay together regardless. Some of the songs that the girls sing include The Moon, and Cryptocurrencies and Me. They receive payment in cryptocurrency for ticket sales and merchandise at their concerts.

Following the hack at Coincheck, the exchange was handed an order from Japan’s financial watchdog, the Financial Services Agency (FSA), for improvements to ensure the industry’s security. The exchange is to submit a report by the 13th February with measures on how it can improve. The FSA also said it would begin inspections at other exchanges in the country.

Japan is one nation that has started to regulate the crypto industry. Since April 2017 it has required digital currency operators to register with the government. Of the 32 operators only half have received approval. With rising interest in the cryptocurrency market, regulators are concerned that it is at risk of criminal attention, which may be used to fund terrorist organisations.

However, while the FSA have criticised Coincheck for failing to ensure the safety of customers’ funds, Virtual Currency Girls are sticking with it.

Koharu Kamikawa, who wears a fur-eared mask with the NEM cryptocurrency logo on her forehead, said:

Coincheck has some responsibility, but the real culprit is the hacker.

Featured image from Shutterstock.

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