Unlicensed Worldcoin Sales Under Scrutiny

Singaporean authorities have investigated the sale of Worldcoin accounts and tokens, suspecting 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.

Official Statement

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, "Gan said, persons who buy or sell Worldcoin accounts and tokens as a business may be providing a payment service. "

Public Advisory

On August 7, 2024, the country's Police also issued a public advisory warning against selling or transferring Worldcoin accounts. The warning 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," the advisory stated.

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 and strongly advised against engaging in such transfers.

Regulatory and Data Protection

In Singapore, the Personal Data Protection Act (PDPA) governs personal data collection, use, and protection, including sensitive biometric information.

During the parliamentary session, Yong emphasized that organizations managing such data, particularly biometric data, must implement appropriate protection and security measures to mitigate the associated risks when developing and operating their systems.

Global Regulatory Attention

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 suspend Worldcoin's biometric data collection in March 2023 temporarily.

Despite the regulatory challenges, the project has aggressively expanded, amassing over 10 million users globally as of April 2023.