Worldcoin News – Singapore Authorities Investigate Illegal Worldcoin Transactions Amidst Global Data Privacy Concerns
Worldcoin News – The controversial cryptocurrency project Worldcoin, known for its identity-capturing practices, is under investigation in Singapore for potential involvement in money laundering and terrorism financing. On Sept. 9, Deputy Prime Minister Gan Kim Yong, also the chairman of the Monetary Authority of Singapore (MAS), announced the ongoing probe targeting individuals involved in third-party sales and purchases of Worldcoin accounts and tokens.
Investigation into Unauthorized Worldcoin Sales
In a recent Parliamentary discussion, Yong revealed that seven individuals were being investigated by police for offering Worldcoin-related services without the required licenses, in violation of the Payment Services Act 2019. He clarified:
“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.”
Yong further explained that illegally sold Worldcoin accounts and tokens pose a significant risk, as they can be exploited for criminal activities, including money laundering and financing terrorism. These concerns are central to the investigation, as Singapore’s regulatory framework aims to prevent the misuse of digital assets.
Global Concerns Over WLD’s Data Collection Practices
WLD’s troubles aren’t limited to Singapore. The project’s iris biometric data collection system has been under intense scrutiny from regulators around the world. In 2023, countries like India, South Korea, Kenya, Germany, and Brazil halted the collection of biometric data and launched investigations into the company’s data practices. Additionally, European Union regulators flagged potential violations of GDPR standards, with Spain being the first country to ban Worldcoin’s biometric data collection on March 18.
Despite these challenges, WLD has continued its aggressive expansion, amassing over 10 million users by April 16. However, the global regulatory landscape casts a shadow over the future of the project, particularly with concerns around privacy and data security.
Singapore’s Crackdown on Unauthorized Worldcoin Activities
On Aug. 7, Singaporean authorities issued a public advisory against selling or transferring Worldcoin accounts, warning of the potential misuse of personal data. During the parliamentary meeting, Yong emphasized the risks associated with these transactions:
“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 further highlighted that any organization handling sensitive personal data, including biometric information, must comply with Singapore’s stringent data protection and security standards. Failure to adhere to these regulations increases the risk of criminal exploitation.
FAQ
What is the nature of the investigation into WLD in Singapore?
The Singaporean authorities are investigating WLD for alleged involvement in money laundering and terrorism financing. The investigation focuses on individuals offering unauthorized third-party sales and purchases of WLD accounts and tokens, which violates the Payment Services Act 2019.
Why is WLD being scrutinized for biometric data collection?
WLD’s iris biometric data collection system has raised concerns globally. Several countries, including India, South Korea, and Germany, have paused these data collections due to potential violations of data privacy regulations like GDPR. The use of such sensitive personal information has drawn the attention of regulators who fear it could be misused for criminal activities.
How many people are currently under investigation in Singapore?
As of the latest reports, seven individuals are under police investigation for offering Worldcoin-related services without proper licenses. These services may include buying and selling WLD accounts and tokens, which can facilitate criminal activities such as money laundering.
How has WLD responded to global regulatory scrutiny?
Despite regulatory hurdles and investigations, WLD continues its expansion and has amassed over 10 million users as of April 2023. The project remains focused on growing its user base while addressing concerns raised by regulators worldwide.
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