Singapore police authorities are investigating seven individuals suspected of providing Worldcoin accounts and token trading services without proper authorization. Five of these individuals have been arrested in connection with alleged illegal activities under the Payment Services Act 2019.Â
Authorities believe that three men recruited people to create Worldcoin accounts on behalf of multiple entities and then took control of these accounts and tokens in exchange for cash.
How did Worldcoin get into Trouble?
The case has raised concerns about potential violations of payment services regulations, data privacy, and the risks of money laundering and fraudulent transactions. Enquiries concerning the legality of selling Worldcoin accounts to third-party agents in exchange for cash incentives and the wider ramifications of such transactions were directed at Singapore’s Prime Minister and Minister for Finance, according to a government document.
Deputy Prime Minister and Minister of Trade and Industry, Mr Gan Kim Yong, responded by making it clear that unlicensed individuals or enterprises are not allowed to provide payment services under the Payment Services Act. He made it clear that even though Worldcoin is exempt from this act’s payment service requirements, selling accounts and tokens for profit could still be illegal.
The Monetary Authority of Singapore (MAS) in Singapore is keeping a careful eye on the circumstances. While Worldcoin’s operations are not yet governed by the Payment Services Act, those who sell tokens and accounts could face some serious scrutiny.
The Singapore Police Force has issued a warning to the public, advising against selling or transferring control of their Worldcoin accounts, as such actions may facilitate money laundering, terrorism financing, or other criminal activities.
Are Digital Assets Under Trouble in Singapore?
The Personal Data Protection Commission (PDPC) has emphasised the need to protect personal data, particularly biometric data that is gathered by organisations when it comes to data privacy.
Entities managing such data must put strong security measures in place to protect user privacy under Singapore’s Personal Data Protection Act (PDPA) the announcement said. This is especially important when it comes to digital assets and payment tokens, as data security lapses may have dire repercussions.
Consumers have been warned by authorities not to fall for schemes that trick them into giving up access to their Worldcoin accounts, World IDs, or digital payment tokens. One of the disadvantages of doing this is that third parties may use it without authorisation, which could result in criminal action being committed under their names.
Singapore Still Leading in Crypto
Singapore continues to lead the world in the adoption of cryptocurrencies despite these problems. Singapore leads the world in cryptocurrency adoption, closely followed by Hong Kong and the UAE, according to a recent Henley & Partners research.Â
Several variables were assessed by the Henley Crypto Acceptance Index 2024, including infrastructure, innovation, public acceptance rates, economic conditions, tax laws, and regulatory frameworks.
Singapore has become a global leader in the cryptocurrency space thanks to its robust regulatory environment and openness to technical innovation. However, officials are advising the public to exercise caution and abide by laws intended to prevent the exploitation of digital assets as the investigation into fraud related to Worldcoin continues.