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 such activities may breach the country’s Payment Services Act (PS Act) of 2019.
The probe centers around seven individuals allegedly involved in the unauthorized sale of Worldcoin-related services, including third-party transactions of accounts and tokens.
Unlicensed Worldcoin Account Sales
Deputy Prime Minister Gan Kim Yong, who also chairs the Monetary Authority of Singapore (MAS), revealed the investigation during a parliamentary session on September 9.
These individuals are being looked into for conducting payment services without the required licenses, violating the PS Act.
“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,” Gan said.
On August 7, 2024, the country’s Police also issued a public advisory warning against the sale or transfer of Worldcoin accounts.
It highlighted that accounts could be misused for illegal purposes such as money laundering or financing terrorism.
“Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID.”
While at parliament, Yong warned users to be cautious of offers to transfer control of their digital payment token wallets or World IDs.
He added that these accounts could be exploited by third parties, strongly advising against engaging in such transfers.
Data Privacy Under Scrutiny
In Singapore, the Personal Data Protection Act (PDPA) governs the collection, use, and protection of personal data, including sensitive biometric information.
During the parliamentary session, Yong emphasized that organizations managing such data, particularly biometric data, need to 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 gotten significant regulatory attention worldwide, particularly around its data collection practices.
Since its introduction, regulators in several countries, including India, China, Germany, Brazil, and Kenya, have investigated the company.
European authorities, particularly in Spain, have raised concerns over potential violations of the General Data Protection Regulation (GDPR), prompting Spain to temporarily suspend Worldcoin’s biometric data collection in March 2023.
Despite the regulatory challenges, the project has aggressively expanded, amassing over 10 million users globally as of April 2023.
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