The deputy prime minister said Worldcoin was not a payment service under the Payment Services Act, but people who traded its accounts and tokens might be providing payment services.
Singapore’s Deputy Prime Minister Gan Kim Yong announced on Monday that the Singapore police have launched an investigation into seven individuals suspected of providing services for buying and selling Worldcoin accounts and tokens.
The investigation stems from possible violations of the Payment Services (PS) Act 2019. The minister clarified this in a written reply to questions from MPs Rachel Ong and Derrick Goh.
Kim Yong explained that according to data provided by the Monetary Authority of Singapore, Worldcoin does not qualify as a payment service under the PS Act. However, those involved in the purchase or sale of Worldcoin accounts and tokens may be providing payment services.
He warned consumers to be wary of offers to give up control of their digital payment token wallets or World IDs, noting that such accounts are at risk of being misused by third parties.
"We warn consumers not to do this," he said.
As of press time, Worldcoin has not responded to Cryptonews’ request for comment.
Singapore Police Arrest Five in Connection with Worldcoin Accounts and Token Sales
Last month, Singapore police arrested five suspects for allegedly offering services to buy or sell Worldcoin accounts and tokens.
Last month, Singapore police arrested five people suspected of buying and selling Worldcoin accounts and tokens. Preliminary investigations showed that three men were suspected of recruiting people to create Worldcoin accounts on behalf of different entities.
They then took control of the accounts and tokens in exchange for cash. The assets were transferred to a fourth man and a woman who are believed to have been involved in purchasing and managing the transfer of the assets. During the operation, police seized more than 200 mobile phones as evidence.
Worldcoin’s global identity project raises privacy concerns amid regulatory scrutiny
Led by Sam Altman, Max Novendstern, and Alex Blania, Worldcoin aims to build a global digital identity and financial network. The company is focused on creating a secure, privacy-focused “World ID” using iris scans to differentiate between humans and AI via Orb.
Although Worldcoin uses zero-knowledge proofs to guarantee anonymity, its collection of biometric data has raised privacy concerns around the world. Regulators in France, the United Kingdom and Hong Kong are investigating potential privacy violations. Colombia and Argentina have also begun similar investigations, highlighting the tension between technological advancement and privacy rights.
Buying or selling Worldcoin accounts or tokens may raise ethical or legal issues, particularly regarding data privacy and financial regulation.