The altcoin Worldcoin project behind the controversial altcoin WLD is facing serious charges in Singapore. On September 9, Singapore’s Deputy Prime Minister Gan Kim Yong announced that an investigation into the illegal trade of Worldcoin accounts and tokens is underway. The probe involves seven individuals accused of selling and purchasing these accounts, violating Singapore’s Payment Services Act (PS Act), which was implemented in 2019.
Investigation into Illegal Account and Altcoin Trade
This incident has sent shockwaves through the crypto world in Singapore, highlighting how payment services regulations can be violated. Worldcoin, a project known for offering identity verification and payment services in the crypto sector, is now at the center of controversy. The illegal trade of its accounts and tokens raises significant concerns, as these assets could be used for unlawful activities such as money laundering or terrorism financing.
Singapore’s Deputy Prime Minister Gan Kim Yong pointed out that while Worldcoin does not provide payment services itself, the individuals engaged in this illegal account trade may be offering such services. This activity violates the PS Act, prompting authorities to launch an investigation. The scrutiny of these seven individuals puts the spotlight on the regulatory compliance of cryptocurrencies in Singapore and underscores the tight control over payment services in the country.
Global Regulatory Pressure: Worldcoin’s Data Collection Under Scrutiny
The challenges for Worldcoin are not confined to Singapore. Globally, the project’s iris biometric data collection system has raised significant concerns in multiple countries. In 2023, regulatory authorities in India, South Korea, Kenya, Germany, and Brazil halted Worldcoin’s iris data collection activities, launching investigations into the project’s practices. These countries fear that Worldcoin’s data collection methods could violate personal privacy rights.
In Europe, concerns about potential violations of the GDPR regulations have also surfaced. On March 18, 2023, Spain became the first country to completely ban Worldcoin’s biometric data collection activities. Despite these regulatory pressures, Worldcoin continued to grow rapidly, reaching over 10 million users globally by April 2023. However, this fast growth has not resolved the project’s regulatory issues and has instead sparked further debates.
Singapore’s Warnings
Singapore’s police have issued warnings regarding the sale of Worldcoin accounts to third parties, urging the public to stay vigilant against such illegal activities. In an August 7 statement, authorities emphasized that individuals should not sell their Worldcoin accounts or tokens, cautioning that these accounts could fall into the hands of bad actors and be used for unlawful activities.
