Worldcoin has faced numerous controversies in recent times. The biometrics-oriented cryptocurrency startup has once again come into the spotlight as Singapore’s Gan Kim Yong hinted at an ongoing probe into unauthorized third-party transactions involving Worldcoin accounts and tokens.
Yong, Singapore’s Deputy Prime Minister and Chairman of the Monetary Authority, disclosed during a parliamentary session that seven individuals are presently being investigated. These individuals are suspected of engaging in the buying and selling of Worldcoin accounts, an activity that contravenes Singapore’s Payment Services Act enacted in 2019. According to Yong,
“…Worldcoin itself does not fall under the purview of the PS Act. However, individuals conducting transactions involving Worldcoin accounts and tokens for profit may be deemed to be providing payment services.”
Yong’s remarks were made in response to queries raised by Members of Parliament Rachel Ong and Derrick Goh. This development follows a recent advisory by Singapore’s law enforcement urging citizens against partaking in the sale of Worldcoin accounts or tokens.
Worldcoin’s Regulatory Challenges on a Global Scale!
It is worth noting that Worldcoin has encountered regulatory hurdles in various jurisdictions worldwide due to its handling of sensitive data, particularly biometric information. Authorities have emphasized the startup’s obligation to comply with data protection and privacy laws at all times.
In countries like Argentina, Worldcoin witnessed a surge in usage amid severe inflation reaching up to 250%. Nevertheless, it came under scrutiny by the Agency for Access to Public Information for its data collection methods. Authorities in provinces like Buenos Aires even imposed hefty fines amounting to 190 million pesos on the Foundation, citing mishandling of biometric data.
Similarly, regulatory bodies in Hong Kong and Colombia have accused Worldcoin of recurrent breaches of their respective local data privacy regulations.