Authorities are investigating the unlicensed sale of Worldcoin accounts and are cautioning against the potential for their misuse in the context of money laundering or terrorism financing.
Singaporean authorities have initiated an inquiry into the sale of Worldcoin accounts and tokens, with the suspicion that such transactions may violate the country’s Payment Services Act (PS Act) of 2019.
The investigation revolves around seven individuals who are purportedly involved in the unauthorized sale of Worldcoin-related services, which includes third-party transactions of accounts and tokens.
During a parliamentary session on September 9, Deputy Prime Minister Gan Kim Yong, who also serves as the chairman of the Monetary Authority of Singapore (MAS), disclosed the investigation.
Investigating these individuals for violating the PS Act by conducting payment services without the necessary licenses is underway.
The country’s Police additionally released a public advisory caution against the sale or transfer of Worldcoin accounts on August 7, 2024.
It underscored the potential for accounts to be abused for unlawful purposes, including the financing of terrorism or money laundering.
Consumers should exercise caution when offered incentives to transmit access to their digital payment token wallet or World ID.
Yong cautioned users to exercise caution when receiving offers to relinquish control of their digital payment token purses or World IDs while in parliament.
He also cautioned against engaging in such transfers, citing the potential for third parties to exploit these accounts.
The Personal Data preservation Act (PDPA) in Singapore regulates the accumulation, use, and preservation of personal data, which includes sensitive biometric information.
In the parliamentary session, Yong underscored the necessity for organizations that manage biometric data to implement suitable security and protection measures to reduce the risks associated with the development and operation of their systems.
Worldcoin has garnered substantial attention from regulators worldwide, notably in relation to its data acquisition practices, as it depends on biometric information for user verification.
The company has been the subject of investigations by regulators in numerous countries, such as India, China, Germany, Brazil, and Kenya, since its introduction.
In March 2023, Spain temporarily suspended Worldcoin’s biometric data collection due to concerns by European authorities, particularly in Spain, regarding potential violations of the General Data Protection Regulation (GDPR).
Despite the regulatory obstacles, the project has rapidly expanded, accumulating more than 10 million users worldwide as of April 2023.
Also Read: Reddit user said ChatGPT started a conversation based on the information provided previously
Wallets