Singapore investigates unlicensed Worldcoin account sales

Singaporean authorities have initiated an investigation into the unauthorised sale of Worldcoin (CRYPTO:WLD) accounts and tokens, suspecting potential violations of the Payment Services Act (PS Act) of 2019. 

The probe focuses on seven individuals allegedly involved in selling Worldcoin-related services, including third-party transactions of accounts and tokens without the necessary licenses.

Deputy Prime Minister Gan Kim Yong, who also serves as the chairman of the Monetary Authority of Singapore (MAS), announced the investigation during a parliamentary session on September 9. 

"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 stated. 

The investigation targets those potentially conducting payment services without the required licensing, a violation of the PS Act.

The Singapore Police issued a public advisory on August 7, 2024, warning against the sale or transfer of Worldcoin accounts. 

The advisory cautioned that such accounts could be misused for illicit activities, including money laundering or financing terrorism. 

"Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID," the advisory noted. 

Yong echoed these concerns, urging users to be vigilant against offers to transfer control of their digital wallets or World IDs, which could be exploited by third parties.

In addition to concerns about unlicensed sales, data privacy is also under scrutiny. 

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

Yong emphasised the need for organisations handling such data, particularly biometric data, to implement robust security measures to mitigate risks when developing and operating their systems.

Worldcoin, which uses biometric data like iris scans for user verification, has faced global regulatory attention over its data collection practices. 

Since its launch, countries such as India, China, Germany, Brazil, and Kenya have conducted investigations into the company's operations. 

European authorities, especially in Spain, have raised concerns about potential breaches of the General Data Protection Regulation (GDPR), leading to Spain temporarily suspending Worldcoin’s biometric data collection in March 2023.

At the time of reporting, the Worldcoin (WLD) price was $1.44.