As regulators worry about criminal behavior and data misuse, Singapore is looking into sales of unauthorized Worldcoin accounts
Singapore is looking into how people are abusing Worldcoin, the controversial cryptocurrency project that captures people’s identities, to launder money and fund terrorism.
Gan Kim Yong, Singapore’s deputy prime minister and head of the Monetary Authority of Singapore (MAS), said on September 9 that the government is looking into a group of people who sell and buy Worldcoin accounts and tokens on their behalf.
According to the Payment Services Act 2019, seven people are being investigated by the police for providing Worldcoin-related services without licenses. Yong said this during a talk in Parliament:
“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.”
He said that the Worldcoin accounts and tokens that are sold illegally could be used for illegal things like laundering money and funding terrorists.
The way Worldcoin collects data is being closely looked at by regulators worldwide.
The iris biometric data collection method used by Worldcoin was looked at by major regulators worldwide. In 2023, governments in India, South Korea, Kenya, Germany, and Brazil stopped collecting eye data and looked into how the company collected data.
European authorities also pointed to possible breaches of GDPR rules. Spain was the first country to stop collecting fingerprint data for Worldcoin on March 18. Despite all the problems, Worldcoin grew quickly and had more than 10 million users by April 16.
Singapore cracks down on selling Worldcoin accounts without permission
Singapore cops told people on August 7 not to “give away or sell their Worldcoin accounts,” Yong said at the Parliamentary meeting. He also said this about Worldcoin’s use of personal information:
“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 also noted that companies dealing with private information like biometric data must follow Singapore’s data protection and security rules to stop illegal activities involving this kind of information.