Singapore has launched an investigation into possible illegal activities surrounding Worldcoin, a project co-founded by OpenAI's Sam Altman that aims to create a global identity network using biometric data and its cryptocurrency, the WLD token.
Deputy Prime Minister Gan Kim Yong, who also heads the Monetary Authority of Singapore (MAS), disclosed on September 9 that the police are investigating seven individuals involved in unauthorized trading of Worldcoin accounts and tokens.
Singapore's Payment Services Act of 2019 requires individuals offering payment services to be licensed. Yong noted that while Worldcoin itself does not provide such services under the act, those who engage in buying or selling Worldcoin accounts and tokens as a business could be operating an illegal payment service.
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He advised the public to avoid selling or transferring their Worldcoin accounts, expressing concerns about the misuse of such accounts for criminal purposes, like money laundering or terrorism financing. Yong said:
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.
Furthermore, Yong stressed that organizations dealing with sensitive information, especially biometric data, must follow strict regulations to safeguard against misuse.
In an email sent to BitDegree, Tools for Humanity, a Worldcoin contributor, clarified that the individuals related to the investigation were not "affiliated with Worldcoin or its operations in any way." The contributor further assured:
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.
Worldcoin has faced increasing scrutiny from regulators worldwide, particularly over its practice of collecting iris biometric data. Countries like the UK, Argentina, and Portugal have taken action, suspending iris data collection or investigating the company's methods of gathering personal information.
This investigation highlights growing concerns about how platforms handle personal data and the potential risks of misuse.
