Malaysia Bans Atomic Wallet for Operating Without Registration

By Philip Maina

16 hours agoWed Dec 25 2024 08:00:23

Checking out Time: 2 minutes

• Malaysia has actually restricted Atomic Wallet from running in the nation
• The nation holds that the wallet isn’t signed up to run a digital property exchange
• Atomic Wallet is to name a few crypto-focussed entities that have actually likewise been disallowed from running in the nation

The Malaysian Securities Commission (SC) has actually forbidden Atomic Wallet from running in the nation stating it’s running without registration. The securities regulator stated the wallet is unlawfully running a digital possession exchange and connected links to the wallet’s page on Google Play Store and Apple’s App Store. Atomic Wallet isn’t the only crypto-focused platform on the regulator’s list of restricted platforms with others noted for running an “unlawful financial investment plan,” a sign that Malaysia is dedicated to safeguarding its crypto users by requiring crypto operators to run under the county’s monetary laws.

SC Believes Some Platforms Are Scams

The commission likewise noted other platforms like Autobot Crypto for “continuing unlicensed capital market activities of handling securities.” The commission cautioned financiers versus handling platforms on the list stating that such financiers aren’t safeguarded under Malaysian securities laws.

Other platforms on the list are implicated of running frauds, misusing the commission’s logo design to bring in users, and misusing the names and qualifications of signed up entities.

In 2015, Atomic Wallet suffered an information breach that led to users cumulatively losing over $100 million. The hack was connected to North Korean hackers who later on washed the illegal funds through Garantex.

Suppressing Money Laundering Through Regulations

Impacted users submitted a class-action suit looking for the wallet company to compensate them. In September this year, a United States court dismissed the claim stating that it did not have jurisdiction over Atomic Wallet which is signed up in Estonia.

The addition of Atomic Wallet on Malaysia’s “financier alert list,” comes as more nations look for to control crypto operators to secure their people and avoid cash laundering and terrorism funding through crypto platforms.

With Atomic Wallet being amongst the leading crypto wallet companies, it’s to be seen whether it’ll officially look for a Malaysian license.

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