Why Singapore Authorities Are Probing Worldcoin Traders?

The Singapore Police have launched an investigation into a group that is allegedly trading Worldcoin (WLD) accounts and tokens. The crypto project Worldcoin has stirred global regulatory controversy due to its data collection practices.

Deputy Prime Minister of Singapore Gan Kim Yong announced that the probe focuses on money laundering and terrorism financing activities.

Monetary Authority of Singapore (MAS) Warns Against Worldcoin Trading

This investigation specifically targets seven individuals who allegedly violated the Payment Services Act 2019. This act strictly regulates payment services to prevent their criminal misuse. Yong highlighted that although Worldcoin itself does not meet the act’s criteria for a payment service, individuals who commercially trade its accounts or tokens must adhere to its regulations.

Read more: Where To Buy Worldcoin (WLD): 5 Best Platforms for 2024

Furthermore, the MAS has issued a warning urging the public to be cautious about transferring ownership of their Worldcoin accounts, which could be exploited for illicit activities. In conjunction with this, the Personal Data Protection Commission (PDPC) enforces stringent guidelines to secure personal information, including biometric data that Worldcoin collects.

“Consumers should beware of inducements to transfer access of their digital payment token wallet or World ID as these accounts could be misused by third parties. We caution consumers against doing so,” Yong said.

Globally, Worldcoin has attracted regulatory scrutiny. Notably, Mexico’s authorities have opened an investigation concerning the company’s handling of data. This action reflects growing concerns echoed in Chile, Colombia, Ecuador, and Argentina about potential privacy violations.

The financial repercussions of these controversies are significant. Since March 2024, Worldcoin’s market value has declined by nearly 80%, paralleling a broader downturn in the crypto markets.

Read more: Worldcoin (WLD) Price Prediction 2024/2025/2030

Despite these setbacks, Worldcoin’s leadership remains ambitious. During Korea Blockchain Week, Tools for Humanity CEO Alex Blania drew parallels between Worldcoin’s goals and Facebook’s global influence.

Blania also discussed technological advancements, specifically the upcoming launch of an updated Orb device. This device aims to enhance the security and efficiency of the digital IDs that Worldcoin issues. Currently, over 6.5 million World IDs have been verified in more than 160 countries, demonstrating the project’s extensive yet contentious reach.