Singapore Investigates Illegal Sale of Worldcoin Accounts Amid Concerns of Money Laundering

Singapore authorities are currently investigating individuals involved in the illegal sale and purchase of Worldcoin accounts and tokens, raising concerns about potential links to money laundering and terrorism financing. Worldcoin, a controversial cryptocurrency project known for its biometric identity data collection, has faced regulatory scrutiny worldwide.

Worldcoin Under Investigation

Deputy Prime Minister and Chairman of the Monetary Authority of Singapore (MAS), Gan Kim Yong, revealed that seven individuals are being investigated for offering Worldcoin-related services without proper licensing. Under Singapore’s Payment Services Act 2019, such actions are considered unlawful.

Yong noted that while Worldcoin itself does not offer payment services under this law, those who buy or sell Worldcoin accounts as a business may be conducting unlicensed payment services. He explained that these accounts and tokens could be misused for criminal activities such as money laundering.

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Worldcoin's Response

Tools for Humanity, a contributor to Worldcoin, clarified that the suspects under investigation are not affiliated with the project. The company reiterated its compliance with Singapore’s legal and regulatory framework, including the Payment Services Act.

Global Scrutiny on Worldcoin’s Data Collection

Worldcoin’s iris biometric data collection practices have drawn the attention of regulators worldwide. Countries such as India, South Korea, Kenya, Germany, and Brazil have scrutinised its operations, especially regarding privacy concerns. In response, Tools for Humanity has scaled back certain operations, particularly in India, while continuing to operate in other regions such as Korea and Germany.

European regulators have also questioned Worldcoin’s data practices, with Spain temporarily halting its biometric data collection in March 2023 due to concerns over potential violations of General Data Protection Regulation (GDPR) standards.

Warnings and Consumer Protection

Singapore’s authorities had previously advised the public against selling their Worldcoin accounts, highlighting the risks of misuse. Organisations handling sensitive personal data, including Worldcoin, must adhere to strict data protection protocols to safeguard against misuse and related criminal activities.