World

Worldcoin

April

World ID

Update (Sept. 10, 4:10 am UTC): This article has been updated to include interview comments and correction requests from Tools for Humanity, a Worldcoin contributor. 
Bad actors dealing in the illegal sale and purchase of Worldcoin accounts and tokens, the controversial cryptocurrency project known for capturing identity data, are under investigation in Singapore for potential involvement in money laundering and financing terrorism.
On Sept. 9, Gan Kim Yong, the deputy prime minister of Singapore and chairman of the Monetary Authority of Singapore (MAS), <a data-ct-non-breakable="null" href="https://www.mas.gov.sg/news/parliamentary-replies/2024/written-reply-to-parliamentary-question-on-risks-relating-to-worldcoin-in-singapore" rel="nofollow noopener" target="_blank" text="null" title="https://www.mas.gov.sg/news/parliamentary-replies/2024/written-reply-to-parliamentary-question-on-risks-relating-to-worldcoin-in-singapore">revealed</a> an ongoing investigation into a group of individuals offering third-party sales and purchases of Worldcoin accounts and tokens.
During a parliamentary discussion, Yong said that seven individuals were under police investigation for offering Worldcoin-related services without licenses, which is considered an offense under the Payment Services Act 2019:
<blockquote>
 “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.”
</blockquote>
The Worldcoin accounts and tokens sold illegally can be misused for criminal activities such as money laundering and terrorism financing, he explained.&nbsp;Speaking to Cointelegraph, Tools for Humanity, a Worldcoin contributor, clarified that the suspects are not affiliated with Worldcoin or its operations in any way. They said:
<blockquote>
 ”The Worldcoin Foundation in Singapore, and around the world, operates in compliance with relevant laws and regulations pertaining to all aspects of the Worldcoin project including the Payment Services Act in Singapore. Any reports or speculation to the contrary are false and misleading.”
</blockquote>
<h2 id="global-regulatory-scrutiny-on-worldcoin-s-data-collection-practices">Global regulatory scrutiny on Worldcoin’s data collection practices</h2>
Major regulators around the world have placed Worldcoin’s iris biometric data collection system under close scrutiny. In 2023, regulators in <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/worldcoin-halts-iris-scanning-india-brazil-france-report" rel="null" target="null" text="null" title="null">India</a>, <a data-ct-non-breakable="null" href="https://www.pipc.go.kr/np/cop/bbs/selectBoardArticle.do?bbsId=BS074&amp;mCode=C020010000&amp;nttId=9963#LINK" rel="null" target="null" text="null" title="null">South Korea</a>, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/kenya-defies-us-pressure-maintains-worldcoin-suspension" rel="null" target="null" text="null" title="null">Kenya</a>, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/german-government-watchdog-launched-worldcoin-probe" rel="null" target="null" text="null" title="null">Germany</a> and <a data-ct-non-breakable="null" href="https://es.cointelegraph.com/news/worldcoin-halts-iris-scanning-india-brazil-france-report" rel="null" target="null" text="null" title="null">Brazil</a> investigated the company’s data collection practices.&nbsp; Tools for Humanity clarified that the orb-verified proof of personhood services were temporarily scaled back in India as the protocol works to develop and roll out a bespoke, safe and orderly process that sufficiently meets the demand for World ID in India. “Worldcoin continues to operate in Korea and Germany (see here); and Kenya's Directorate of Criminal Investigations (DCI) concluded its investigation, clearing Worldcoin of any wrongdoing,” they concluded.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/worldcoin-launches-singapore-following-india-pause" rel="null" target="null" text="null" title="https://cointelegraph.com/news/worldcoin-launches-singapore-following-india-pause">Worldcoin launches in Singapore following India pause</a>
Additionally, European regulators cited <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/portuguese-regulator-bans-worldcoin-90-days" rel="null" target="null" text="null" title="null">potential violations of General Data Protection Regulation standards</a>. On March 18, Spain became the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/worldcoin-legal-all-operated-countries-ban-spain" rel="null" target="null" text="null" title="null">first country to temporarily pause Worldcoin’s biometric data collection</a>. Despite the hurdles, Worldcoin maintained an aggressive expansion, eventually <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/worldcoin-reaches-10-m-users-70-m-transactions-dozen-goats-ubi" rel="null" target="null" text="null" title="null">amassing more than 10 million users</a> as of April 16.
<h2 id="singapore-cracks-down-on-unauthorized-sale-of-worldcoin-accounts">Singapore cracks down on unauthorized sale of Worldcoin accounts</h2>
On Aug. 7, the Singapore police advised the general public from “giving away or selling their Worldcoin accounts,” Yong said at the Parliamentary meeting. Speaking about Worldcoin’s collection of personal data, he added:
<blockquote>
 “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.”
</blockquote>
He further noted that organizations that handle sensitive personal information, including biometric data, must adhere to Singapore’s data protection and security arrangements to deter related criminal activities.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/parents-addicted-pi-network-crypto-tapper/" rel="null" target="null" text="null" title="null">Help! My parents are addicted to Pi Network crypto tapper</a>

Singapore probes illegal Worldcoin accounts and token sales

Table of Contents

Cointelegraph

Other articles published on Sep 10, 2024

Rocky Rabbit Enigma and SuperSet Combo For September 10

Crypto CEO Says We’ll Look Back At Today’s XRP Prices. Here’s why

Bitcoin ETFs Turn Green, Bitwise CIO Highlights Record Milestone For These Funds

Court Ruling Sparks Kraken’s Changes to Fiat Margin Trading in Australia

Penpie DeFi Protocol Hacked, $27M in Crypto Stolen

XRP Investors Set to Dominate in 2024

Join our free newsletter for daily crypto updates!