Singapore Cracks Down on Worldcoin Trading: Seven Individuals Under Investigation

Singaporean authorities have intensified their scrutiny of Worldcoin trading by investigating seven individuals allegedly involved in the unlawful buying and selling of Worldcoin accounts and tokens. This move, announced by Deputy Prime Minister Gan Kim Yong on September 9, signifies Singapore’s commitment to cracking down on illegal cryptocurrency activities.

The suspects face allegations of providing services to facilitate transactions involving Worldcoin accounts and tokens without proper licensing. The Payment Services Act 2019 (PS Act) regulates such activities, stipulating that only licensed or exempt entities may conduct these transactions. This regulatory framework aims to ensure that all financial transactions, including those involving cryptocurrencies, are conducted transparently and legally.

Read more: Worldcoin Faces Data Privacy Breach in Colombia: Will It Affect WLD Coin’s Price?

Singaporean Minister Addresses Worldcoin's Regulatory Concerns and Risks of Digital Identity Misuse

In a recent parliamentary session, Minister Gan addressed questions about Worldcoin’s regulatory status in Singapore. He clarified that while the Worldcoin project itself is not engaged in trading its users' data or accounts, third parties involved in these activities could be violating the PS Act. This raises concerns about the misuse of digital identities, which could facilitate illicit activities such as money laundering.

The investigation follows earlier warnings from Singaporean authorities regarding the risks associated with selling Worldcoin accounts. On August 7, the police issued a public notice advising against the transfer or sale of digital identities. They emphasised that such actions could result in serious criminal activities and legal repercussions. This warning was issued around the same time as the arrest of five individuals, who were accused of operating without the necessary licenses to provide payment services related to Worldcoin.

Read more: Worldcoin Responds to Insider Trading and Price Manipulation Allegations

Global Scrutiny of Worldcoin

The scrutiny of Worldcoin extends beyond Singapore. The project, known for its use of iris scans to verify user identities, has faced various legal and regulatory challenges internationally. In Hong Kong, authorities are investigating whether Worldcoin’s operations contravene federal privacy laws. Similarly, Colombian officials are examining potential breaches of privacy laws related to the project. While Kenya had previously conducted an investigation into Worldcoin, that inquiry has been closed.