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Malaysia Bans Atomic Wallet Amid Security Concerns

According to Cointelegraph, the Malaysian Securities Commission has added Atomic Wallet, a Web3 wallet service, to its list of financial companies banned from operating in the country. The decision was made due to Atomic Wallet operating a digital asset exchange without proper registration. The move is in line with the commission’s ongoing efforts to regulate cryptocurrency-related activities within Malaysia.

Atomic Wallet, which promotes itself as a secure and decentralized platform for storing and exchanging over 100 digital assets, has faced significant challenges in recent years. In 2023, the company was hit by a cyberattack that resulted in losses of over $100 million. The incident led to a class-action lawsuit in the United States, though it was later dismissed due to legal issues. The hack was reportedly linked to the North Korean Lazarus group, which allegedly routed the stolen assets through a Cambodian cryptocurrency exchange.

The Malaysian Securities Commission’s actions against Atomic Wallet are part of a broader crackdown on unregistered crypto companies in the region. Other companies, such as Crypto Trade Malaysia and Best Exchange, have also been banned from operating in the country. This regulatory stance reflects growing concerns about the security and legitimacy of digital asset platforms, especially in light of increasing cyber threats.