Singapore is looking into unauthorized sales of Worldcoin accounts as regulators express concerns about potential data misuse and criminal activities.
The investigation focuses on allegations that the controversial project is involved in money laundering and financing terrorism.
Ongoing investigation into Worldcoin activities
Gan Kim Yong, Singapore’s Deputy Prime Minister and chairman of the Monetary Authority of Singapore, the MAS announced that authorities are investigating a group of individuals who have been offering third-party sales and purchases of Worldcoin accounts and tokens.
During a parliamentary session, Yong shared that seven people are being investigated by the police for providing Worldcoin-related services without the necessary licenses, which violates the law, the Payment Services Act of 2019.
“Based on information provided to MAS, Worldcoin does not perform a payment service under the PS Act. However, persons who buy or sell Worldcoin accounts and tokens as a business may be providing a payment service.”
Biometric data, fake identites
Yong told that these illegally sold accounts and tokens could be exploited for criminal activities, including money laundering and terrorism financing.
Worldcoin’s biometric data collection system has already drawn scrutiny from regulators around the world.
In 2023, authorities in countries like India, South Korea, Kenya, Germany, and Brazil paused iris scanning and began investigating the company’s practices.
European regulators also pointed out possible violations of GDPR standards. On March 18, Spain became the first country to ban Worldcoin’s biometric data collection.
But despite facing these quite hard challenges, Worldcoin aggressively expanded its user base, reaching over 10 million users by April 16.
If you sell your worldcoin data, or someone else sells your data, you may become a suspect
Singapore police warned the public against selling or giving away their Worldcoin accounts.
During the parliamentary meeting, Yong cautioned consumers about the risks associated with transferring access to their digital payment token wallets or World IDs, stating that these accounts could be misused by third parties, but the police will knock the original owner’s door.
He also noted that organizations dealing with sensitive personal information, including biometric data, must comply with Singapore’s data protection and security regulations to prevent criminal activities.
The Singaporean investigation may lead to stricter regulations on cryptocurrency projects in Singapore, especially if they are dealing with sensitive personal or biometric data, like Worldcoin does.
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