Malaysia flags Atomic Wallet as unauthorised operation
Malaysia’s securities regulator has identified Atomic Wallet, a Web3 wallet service, as an unauthorised operation within the country.
The Malaysian Securities Commission announced that Atomic Wallet has been added to a list of financial firms prohibited from operating in Malaysia.
The action comes after the wallet service provider suffered a significant hack in 2023, resulting in losses exceeding $100 million.
According to the commission, Atomic Wallet was flagged for “operating a digital asset exchange (DAX) without registration.”
This designation raises concerns regarding the regulatory compliance of the wallet service and its potential risks to users.
The decision reflects ongoing efforts by Malaysian authorities to regulate the cryptocurrency space and protect investors from unauthorised operations.
By prohibiting unregistered firms, the Malaysian Securities Commission aims to enhance oversight and ensure that digital asset services comply with local laws.
The hack that affected Atomic Wallet has drawn attention to the vulnerabilities associated with digital asset exchanges and wallet services.
As the cryptocurrency market continues to evolve, regulators worldwide are increasingly focused on establishing frameworks that promote security and transparency.
The situation with Atomic Wallet serves as a reminder for users to exercise caution when engaging with digital asset services, particularly those that may not be compliant with local regulations.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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