Worldcoin Being Investigated By Singaporean Authorities For Potentially Violating Regulations

Singaporean authorities are reportedly investigating unauthorized sales of Worldcoin accounts, raising concerns about potential misuse for money laundering or terrorism financing. The development comes during a time when Singapore is looking to become a global hub for digital assets and innovation, which also means local regulations are becoming increasingly tightened.

Previously, Paxos secured a preliminary license in Singapore by local authorities, paving the way for Paxos Digital Singapore Pte. Ltd. to initiate digital payment token services under the Payments Services Act.

Operating Without A License

In Singapore, an inquiry targets seven individuals allegedly involved in illegal transactions of Worldcoin accounts and tokens. Deputy Prime Minister Gan Kim Yong, who also heads the Monetary Authority of Singapore (MAS), revealed this investigation during a parliamentary session on September 9th. The individuals are under scrutiny for operating payment services without the required licenses, which may breach the Payment Services Act (PS Act) of 2019.

The Singapore Police issued a public advisory against Worldcoin account transfers on August 7th, warning that such accounts might be used for illicit activities. Gan advised caution against offers to transfer control of digital payment wallets or World IDs, highlighting the risk of exploitation by third parties.

Data Privacy Concerns

The Personal Data Protection Act (PDPA) in Singapore regulates personal and biometric data. Yong emphasized the need for stringent security measures for organizations handling such data. Worldcoin, which uses biometric verification like iris scans, has repeatedly faced global regulatory scrutiny.

As a matter of fact, several countries, including India, China, Germany, Brazil, and Kenya, have investigated the company, with European authorities in Spain even suspending its biometric data collection in March 2023 due to GDPR concerns. Despite these challenges, Worldcoin has grown rapidly, reaching over 10 million users globally as of April 2023.