Singapore Launches Investigation into Worldcoin Account Gross sales for Potential Regulatory Violations

Singaporean authorities have launched an investigation into the sale of Worldcoin accounts and tokens, suspecting that such actions might breach the nation’s Cost Providers Act (PS Act) of 2019.

The probe facilities round seven people allegedly concerned within the unauthorized sale of Worldcoin-related providers, together with third-party transactions of accounts and tokens.

Unlicensed Worldcoin Account Gross sales

Deputy Prime Minister Gan Kim Yong, who additionally chairs the Financial Authority of Singapore (MAS), revealed the investigation throughout a parliamentary session on September 9.

These people are being seemed into for conducting fee providers with out 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, persons who buy or sell Worldcoin accounts and tokens as a business may be providing a payment service,” Gan mentioned.

On August 7, 2024, the nation’s Police additionally issued a public advisory warning in opposition to the sale or switch of Worldcoin accounts.

It highlighted that accounts might be misused for unlawful functions resembling cash laundering or financing terrorism.

“Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID.”

Whereas at parliament, Yong warned customers to be cautious of provides to switch management of their digital fee token wallets or World IDs.

He added that these accounts might be exploited by third events, strongly advising in opposition to participating in such transfers.

Knowledge Privateness Beneath Scrutiny

In Singapore, the Private Knowledge Safety Act (PDPA) governs the gathering, use, and safety of private information, together with delicate biometric info.

In the course of the parliamentary session, Yong emphasised that organizations managing such information, significantly biometric information, must implement applicable safety and safety measures to mitigate the related dangers when creating and working their programs.

Worldcoin, which depends on biometric info resembling iris scans for person verification, has gotten vital regulatory consideration worldwide, significantly round its information assortment practices.

Since its introduction, regulators in a number of international locations, together with India, China, Germany, Brazil, and Kenya, have investigated the corporate.

European authorities, significantly in Spain, have raised issues over potential violations of the Normal Knowledge Safety Regulation (GDPR), prompting Spain to briefly droop Worldcoin’s biometric information assortment in March 2023.

Regardless of the regulatory challenges, the undertaking has aggressively expanded, amassing over 10 million customers globally as of April 2023.