Singapore Authorities Probe Seven People For Selling Worldcoin Accounts and Tokens

Singaporean authorities are investigating a group of persons for the illegal sale of accounts and tokens linked to the privacy-preserving human identity and financial network Worldcoin.

According to a Parliamentary report by the Monetary Authority of Singapore (MAS), the seven individuals under investigation are suspected of violating the Payment Services Act 2019 (PS Act), which prohibits unlicensed or unexempted persons from providing payment services.

Singapore Investigates Worldcoin Account Traders

The Deputy Prime Minister, Minister for Trade and Industry, and Chairman of MAS, Gan Kim Yong, disclosed the ongoing probe while responding to questions about the risks of Worldcoin operations in Singapore during a Parliamentary meeting earlier this week.

Members of Parliament wanted to know if there were regulations relating to selling Worldcoin accounts to third parties for financial incentives and the implications of such activities. They also asked about the risks of the accounts being used for money laundering and fraudulent operations.

Notably, the inquiries showed the government’s concerns about Worldcoin’s operations relating to data privacy and scams.

Yong explained that information obtained by the MAS revealed that Worldcoin does not offer payment services under the PS Act; however, people who buy or sell accounts and tokens linked to the project provide such services. As a result, the Singapore police have warned locals against trading their Worldcoin accounts because they may be used for criminal activities, including terrorism financing.

Protecting User Data

Speaking on data privacy issues regarding Worldcoin, Yong said the Personal Data Protection Commission (PDPC), which oversees the organizational collection, use, and care of personal data, ensures such entities apply necessary data protection and security measures to address the risks. The MAS chairman added that the PDPC insists these organizations make the arrangements when designing and operating their systems.

“Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID as these accounts could be misused by third parties. We caution consumers against doing so,” Yong warned.

Besides Singapore, regulatory bodies in other countries have been investigating Worldcoin’s collection of user biometric data and scrutinizing the firm for privacy violation practices. Some countries like Spain and Kenya have temporarily paused the project’s biometric data collection, while others like India and Germany are actively investigating the firm’s operations.