Singapore launches investigation into Worldcoin account sales for potential regulatory violations

Singaporean authorities have launched an investigation into the sale of Worldcoin accounts and tokens, suspecting that these activities may violate the Payment Services Act (PS Act) 2019.

The investigation centers around seven individuals allegedly involved in the unauthorized sale of Worldcoin-related services, including third-party account and token transactions.

Sales of unlicensed Worldcoin accounts

Deputy Prime Minister Gan Kim Yong, who also chairs the Monetary Authority of Singapore (MAS), revealed the investigation during a parliamentary session on 9 September.

These people are being investigated for performing payment services without the required licenses, in violation of the PS Act.

“According to the information provided to MAS, Worldcoin does not perform any payment service under the PS Law. However, people who buy or sell Worldcoin accounts and tokens as a business may be providing a payment service,” Gan said .

On August 7, 2024, the country’s police also issued a public advisory warning against the sale or transfer of Worldcoin accounts.

He stressed that the accounts could be misused for illegal purposes, such as money laundering or terrorist financing.

“Consumers should be wary of incentives to transfer access to their digital payment token or World ID wallet.”

While in parliament, Yong warned users to be wary of offers to transfer control of their digital payment token wallets or global identifiers.

He added that these accounts could be exploited by third parties, so he advised against carrying out such transfers.

Data privacy under scrutiny

In Singapore, the Personal Data Protection Act (PDPA) regulates the collection, use and protection of personal data, including sensitive biometric information.

During the parliamentary session, Yong stressed that organizations that manage such data, especially biometric data, must implement appropriate protection and security measures to mitigate the associated risks when developing and operating their systems.

Worldcoin, which relies on biometric information such as iris scans for user verification, has received significant regulatory attention around the world, particularly around its data collection practices.

Since its introduction, the company has been investigated by regulators in several countries, including India, China, Germany, Brazil and Kenya.

European authorities, particularly in Spain, have expressed concerns about possible violations of the General Data Protection Regulation (GDPR), which led Spain to temporarily suspend Worldcoin’s biometric data collection in March 2023.

Despite regulatory challenges, the project has expanded aggressively, amassing more than 10 million users worldwide as of April 2023.

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