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Singapore investigates unauthorized Worldcoin account sales as regulators raise concerns over data misuse and criminal activity.
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The misuse of Worldcoin, the controversial identity-capturing cryptocurrency project, is under investigation in Singapore for perpetrating money laundering and terrorism financing.
On Sept. 9, Gan Kim Yong, the deputy prime minister of Singapore and the chairman of the Monetary Authority of Singapore (MAS), revealed an ongoing investigation into a group of individuals offering third-party sales and purchases of Worldcoin accounts and tokens.
During a Parliamentary discussion, Yong said that seven individuals were under police investigation for offering Worldcoin-related services without licenses, which is considered an offense under the Payment Services Act 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.”
The Worldcoin accounts and tokens sold illegally can be misused for criminal activities such as money laundering and terrorism financing, he explained.
Global regulatory scrutiny on Worldcoin’s data collection practices
Major regulators worldwide scrutinized Worldcoin’s iris biometric data collection system. In 2023, regulators in India, South Korea, Kenya, Germany and Brazil paused iris collections and investigated the company’s data collection practices.
Related: Worldcoin launches in Singapore following India pause
Additionally, European regulators cited potential violations of GDPR standards. On March 18, Spain became the first country to ban Worldcoin’s biometric data collection. Despite the hurdles, Worldcoin maintained an aggressive expansion, eventually amassing more than 10 million users as of April 16.
Singapore crackdown on unauthorized sale of Worldcoin accounts
On Aug. 7, the Singapore police advised the general public from “giving away or selling their Worldcoin accounts,” Yong said at the Parliamentary meeting. Speaking about Worldcoin’s collection of personal data, he added:
“Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID as these accounts could be misused by third parties. We caution consumers against doing so.”
He further noted that organizations that handle sensitive personal information, including biometric data, must adhere to Singapore’s data protection and security arrangements to deter related criminal activities.
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This article first appeared at Cointelegraph.com News
