Investigation Underway in Singapore for Illegal Worldcoin Account Trading

TLDR:

• Singapore investigating seven people for illegal Worldcoin services
• Buying/selling Worldcoin accounts may violate Payment Services Act
• Public warned against transferring Worldcoin accounts due to criminal risks
• Worldcoin faces global regulatory scrutiny over data collection practices
• Organizations handling biometric data must follow Singapore’s data protection laws

Singapore authorities are investigating seven individuals for allegedly offering unauthorized services related to Worldcoin, a cryptocurrency project known for its controversial iris-scanning technology.

This development comes as part of a broader global scrutiny of Worldcoin’s operations and data collection practices.

Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong addressed the issue in a parliamentary session, responding to questions about the regulations and risks associated with Worldcoin in Singapore.

Gan clarified that while Worldcoin itself does not perform a payment service under Singapore’s Payment Services Act, individuals buying or selling Worldcoin accounts and tokens as a business may be providing an unlicensed payment service, which is illegal.

The Singapore police are currently investigating seven subjects for their suspected involvement in offering services to buy or sell Worldcoin accounts and tokens.

These activities are considered offenses under the Payment Services Act 2019. The authorities have warned the public against giving away or selling their Worldcoin accounts or tokens, citing concerns that these could be misused for criminal activities, including money laundering and terrorism financing.

Worldcoin, founded by OpenAI’s Sam Altman, has faced regulatory challenges in several countries. Colombia, Hong Kong, Argentina, and Kenya have all raised concerns about the project’s data collection methods and potential privacy risks.

The company’s practice of scanning users’ irises in exchange for cryptocurrency tokens has drawn particular attention from regulators worldwide.

In Singapore, organizations handling sensitive personal information, including biometric data, are required to adhere to the country’s data protection and security arrangements. This includes compliance with the Personal Data Protection Act (PDPA), which mandates adequate security measures to protect user data.

The global regulatory scrutiny of Worldcoin extends beyond Singapore. In 2023, regulators in India, South Korea, Germany, and Brazil investigated the company’s data collection practices.

European regulators have cited potential violations of General Data Protection Regulation (GDPR) standards. Spain became the first country to temporarily pause Worldcoin’s biometric data collection in March 2024.

Despite these regulatory challenges, Worldcoin has continued its expansion efforts. As of April 2024, the project reported having more than 10 million users.

However, the company has had to adjust its operations in some regions. In India, for example, Worldcoin temporarily scaled back its orb-verified proof of personhood services to develop a process that meets local demand while addressing regulatory concerns.

Tools for Humanity, a contributor to Worldcoin, has stated that the project operates in compliance with relevant laws and regulations worldwide, including Singapore’s Payment Services Act. They have also clarified that the individuals under investigation in Singapore are not affiliated with Worldcoin or its operations.