Singapore probes illegal Worldcoin accounts and token sales

Singapore probes worldcoin for Money Laundering, Terror Financing

Singapore is intensifying its investigation into the misuse of Worldcoin, a controversial identity-capturing cryptocurrency project, for illegal activities such as money laundering and terrorism financing. Gan Kim Yong, Singapore’s deputy prime minister and chairman of the Monetary Authority of Singapore (MAS), revealed that seven individuals are under police investigation for offering unauthorized third-party sales and purchases of Worldcoin accounts and tokens(WLD). This practice, considered illegal under the Payment Services Act 2019, has raised concerns about the potential for criminal misuse.

In his statement during a parliamentary discussion, Yong stressed that while Worldcoin itself does not fall under the Payment Services Act, individuals involved in selling or buying Worldcoin accounts as a business might be providing unlicensed payment services. The illegal trade of these accounts and tokens could facilitate illicit activities such as money laundering and terrorism financing, according to authorities.

Global scrutiny on Worldcoin data collection practices

Worldcoin has faced intense global regulatory scrutiny since its inception, particularly regarding its iris biometric data collection system. The project’s approach to gathering sensitive personal data has prompted investigations in several countries, including India, South Korea, Kenya, Germany, and Brazil, where data collection practices have been temporarily halted. Additionally, European regulators have cited concerns about potential violations of GDPR standards, with Spain being the first country to ban Worldcoin’s biometric data collection in March 2023. Despite these regulatory roadblocks, Worldcoin has continued its expansion, amassing over 10 million users by April 2024.

This scrutiny underscores the growing concern over how Worldcoin’s data collection could potentially be misused, especially in light of its controversial biometric verification system.

Singapore’s crackdown on the unauthorized sale of Worldcoin accounts

In Singapore, the illegal sale of Worldcoin accounts is drawing increased attention. Authorities warned the public in August 2024 not to give away or sell their Worldcoin accounts, highlighting the risks involved. Deputy Prime Minister Gan Kim Yong reiterated this warning, advising consumers to be cautious about transferring access to their digital payment token wallets or World ID accounts, as these could be exploited by third parties for criminal purposes.

He also emphasized the importance of strict data protection, particularly for organizations that handle sensitive personal information like biometric data. Singapore’s regulatory authorities are actively working to ensure that all companies comply with the country’s strict data protection laws to mitigate the risks of financial crime.    

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