According to the Deputy PM, although those who trade Worldcoin’s accounts and tokens might be providing a payment service, the cryptocurrency is not recognized as such by the Payment Services Act.
Singapore police have launched an investigation into seven individuals suspected of offering services to buy and sell Worldcoin accounts and tokens, Deputy Prime Minister Gan Kim Yong announced on Monday.
This investigation stems from possible violations of the 2019 Payment Services (PS) Act. The minister clarified this in a written response to questions from MPs Rachel Ong and Derrick Goh.
Kim Yong explained that, as per data available to the Monetary Authority of Singapore, Worldcoin does not qualify as a payment service under the PS Act. However, those involved in buying or selling Worldcoin accounts and tokens could be offering a payment service.
He warned consumers to stay alert against offers to give up control of their digital payment token wallets or World IDs. These accounts, he noted, are at risk of being misused by third parties.
“We caution consumers against doing so,” he said.
Singapore Police Arrest Five in Worldcoin Account and Token Sales Operation
Last month, the Singapore Police Force arrested five people for allegedly offering a service of buying or selling of Worldcoin accounts and tokens.
Last month, the Singapore Police arrested five individuals suspected of buying or selling Worldcoin accounts and tokens. Initial investigations revealed that three men allegedly recruited people on behalf of various entities to create Worldcoin accounts.
They then took control of these accounts and tokens in exchange for cash. These assets were passed to a fourth man and a woman, believed to be involved in purchasing and managing their transfer. During the operation, the police seized over 200 mobile phones as evidence.
Worldcoin’s Global Identity Project Raises Privacy Concerns Amid Regulatory Scrutiny
Worldcoin, led by Sam Altman, Max Novendstern, and Alex Blania, aims to build a global digital identity and financial network. It focuses on distinguishing humans from AI online by using iris scans through the Orb to create a secure, privacy-focused “World ID.”
Although Worldcoin uses zero-knowledge proofs for anonymity, its collection of biometric data has raised privacy concerns worldwide. Regulatory bodies in France, the UK and Hong Kong are investigating potential privacy violations. Similar inquiries have also started in Colombia and Argentina, highlighting the tension between technological progress and privacy rights.
Buying or selling Worldcoin accounts or tokens may raise ethical or legal questions, particularly concerning data privacy and financial regulations.