Global: Singapore Investigates Illegal Sales of Worldcoin Accounts and Tokens Amid Money Laundering Concerns

Singapore authorities are investigating the illegal sale and purchase of Worldcoin accounts and tokens, a controversial cryptocurrency project known for collecting identity data. The probe focuses on potential links to money laundering and terrorism financing, highlighting the growing regulatory scrutiny surrounding the project.

On September 9, Singapore’s Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), Gan Kim Yong, revealed an ongoing investigation into individuals involved in unauthorized transactions of Worldcoin accounts and tokens. These actions are being examined under the Payment Services Act 2019, which regulates payment service providers in the country.

During a parliamentary session, Yong stated that seven individuals are under police investigation for offering Worldcoin-related services without the necessary licenses. He clarified that although Worldcoin itself does not offer payment services under the PS Act, any business facilitating the buying or selling of Worldcoin accounts and tokens could be operating as an unlicensed payment service provider.

“The illegal sale of Worldcoin accounts and tokens could be exploited for criminal activities such as money laundering and terrorism financing,” Yong explained. Tools for Humanity, a contributor to Worldcoin, stressed that the suspects in this case are not affiliated with Worldcoin or its operations, stating:

“The Worldcoin Foundation in Singapore, and globally, adheres to all relevant laws and regulations, including Singapore’s Payment Services Act. Any reports suggesting otherwise are misleading.”

Global Scrutiny Over Worldcoin’s Data Collection Practices

Worldcoin’s iris biometric data collection system has raised alarms globally, with regulators in countries like India, South Korea, Kenya, Germany, and Brazil investigating the company’s data collection practices in 2023. In response to concerns, Tools for Humanity noted that the project temporarily scaled back its operations in India while developing a more secure process for managing the World ID system.

Worldcoin has faced challenges in several regions. In Kenya, the Directorate of Criminal Investigations concluded an investigation, clearing the company of wrongdoing, while in Europe, regulators expressed concerns over potential violations of General Data Protection Regulation (GDPR) standards. Spain became the first country to temporarily halt Worldcoin’s biometric data collection on March 18. Despite these setbacks, the company continues its global expansion, boasting over 10 million users as of April 16, 2023.

Singapore’s Crackdown on Unauthorized Worldcoin Account Sales

On August 7, Singapore’s police warned the public against selling or transferring their Worldcoin accounts. During the parliamentary meeting, Deputy Prime Minister Yong emphasized the risks posed by transferring access to digital wallets or World IDs, cautioning consumers that such accounts could be misused by third parties.

He further noted that organizations handling sensitive personal data, including biometric information, must comply with Singapore’s stringent data protection regulations to prevent misuse and related criminal activities.