A new twist in the Worldcoin saga: Singapore’s regulators are digging into the project’s underground economy.
Singapore is investigating the controversial cryptocurrency project, Worldcoin, for its potential involvement in money laundering and terrorism financing, according to the latest crypto news.
On September 9, Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), Gan Kim Yong, revealed that a group of individuals is under police scrutiny for unauthorized third-party sales and purchases of Worldcoin accounts and tokens.
According to Yong, seven people are being investigated for offering Worldcoin-related services without proper licenses, which violates 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.”
While Worldcoin itself does not currently fall under the scope of the PS Act, those buying and selling Worldcoin accounts and tokens as a business could still be providing an unregulated payment service.
The illegal sale of these accounts raises concerns about their misuse in criminal activities, such as money laundering and terrorism financing.
Worldcoin’s data collection practices have faced global regulatory scrutiny, particularly due to its use of iris biometric data. In 2023, authorities in countries like India, South Korea, Kenya, Germany, and Brazil suspended iris data collection and launched investigations into the company’s methods.
Moreover, European regulators also raised concerns about violations of GDPR standards, and Spain became the first country to ban the collection of biometric data in March 2023. Despite this, Worldcoin continued to grow, reaching over 10 million users by mid-April.
Singapore has also been proactive in warning its citizens. On August 7, local police advised the public against selling or giving away their Worldcoin accounts, warning that these accounts could be exploited by third parties.
Yong emphasized the importance of protecting personal data, especially biometric information, and reiterated that organizations handling such data must follow Singapore’s strict security protocols to prevent criminal misuse.
