Worldcoin Under Scrutiny in Singapore Over Account Sales and Biometric Data Privacy Concerns

Worldcoin, the cryptocurrency project led by Sam Altman, is facing increased scrutiny in Singapore due to concerns surrounding the buying and selling of accounts and the use of biometric data for user identification.

The Monetary Authority of Singapore (MAS) confirmed that while Worldcoin itself does not fall under the jurisdiction of the Payment Services Act 2019, individuals who engage in the commercial sale or purchase of Worldcoin accounts or tokens could be in violation of the law. Authorities are currently investigating seven individuals suspected of involvement in such activities.

The Payment Services Act 2019 is a regulatory framework designed to oversee digital payment systems and services in Singapore, with a focus on protecting consumers and mitigating risks such as money laundering and terrorism financing.

The Act covers various financial activities, including digital payment tokens and e-wallets, and requires businesses offering these services to adhere to strict licensing, security, and anti-money laundering standards.

In addition to concerns about account sales, the Personal Data Protection Commission (PDPC) has raised issues related to Worldcoin’s use of biometric data, specifically iris scans, for user identification. The PDPC has emphasized the need for strong data protection measures, especially when handling sensitive biometric data, to prevent misuse or security breaches.

A public advisory has been issued in Singapore, warning users against selling or transferring Worldcoin accounts due to the potential for these activities to facilitate money laundering or terrorism financing.

These developments in Singapore come amidst growing global concerns about Worldcoin’s practices. Earlier in 2024, the Buenos Aires Province in Argentina fined Worldcoin 194 million pesos (approximately $203,000 USD) for mishandling biometric data, including irregularities in data collection practices, unclear age restrictions, and problematic contract clauses.

Source: FinTech Singapore

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September 10, 2024 – by The FindBiometrics Editorial Team