Singapore cracks down on unlicensed Worldcoin account and token sales

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  • Singapore is cracking down on third-party sales, purchases of Worldcoin accounts
  • Regulators around the world aren’t very happy with Worldcoin’s practices

As a seasoned crypto investor with a keen eye for regulatory compliance, I must admit that the latest news about Worldcoin is causing me some concern. Having been through numerous crypto bubbles and bursts, I have learned to tread cautiously when it comes to startups that are as controversial as Worldcoin.

Over the last year, Worldcoin has been embroiled in several disputes. The crypto venture that uses retina scans to gather identifying information is once more making headlines following a suggestion by Singapore’s Gan Kim Yong of an ongoing probe into third-party transactions involving Worldcoin accounts.

In a parliamentary address, Yong, who serves as Deputy Prime Minister and heads the Monetary Authority of Singapore, stated that seven individuals are currently being investigated. These individuals are suspected to have offered services related to buying or selling Worldcoin account transactions. This activity is considered illegal under Singapore’s Payment Services Act of 2019.

…”Worldcoin is not considered a payment service provider under the PS Act. Yet, individuals who trade Worldcoin accounts and tokens for profit might inadvertently be offering a payment service.

Yong’s remark came as a reaction to questions posed by Members of Parliament, Rachel Ong and Derrick Goh, following the nation’s police advisory issued last month discouraging citizens from selling their Worldcoin accounts or tokens.

Worldcoin’s global dilemma!

It’s important to note that Worldcoin isn’t new to navigating legal and regulatory requirements across different countries. Given its handling of sensitive information such as biometric data, it’s crucial for them to consistently comply with data protection and privacy laws, as regulators have emphasized repeatedly.

In Argentina, Worldcoin experienced a significant increase in popularity due to inflation reaching as high as 250%. However, this digital currency was scrutinized by the Agency for Public Information Access over its data collection methods. In fact, provinces like Buenos Aires fined the Foundation approximately 190 million pesos, alleging mishandling of biometric data.

In my analysis, I’ve found that both Hong Kong and Colombian regulators assert that Worldcoin has persistently breached their respective data privacy regulations to which they are party.

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2024-09-11 15:35