On 9 September 2024, the Singapore Parliament addressed concerns regarding the operations of Worldcoin in the country, particularly in relation to the potential risks of account sales and data privacy. Worldcoin, a global cryptocurrency project, which has drawn global regulatory attention for its approach of using biometric data (specifically iris scans) to authenticate users and issue tokens. Worldcoin was launched with the aim of creating a decentralized and universally accessible financial system but the platform has faced scrutiny from regulatory authorities worldwide, including in Singapore. The concerns center on potential risks such as money laundering, fraudulent transactions, data privacy violations, and illegal activities related to the buying and selling of Worldcoin accounts. The questions raised by Miss Rachel Ong, MP for West Coast GRC, and Mr Derrick Goh, MP for Nee Soon GRC, focused on the regulatory framework surrounding Worldcoin and the risks associated with its use.
In response, Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of the Monetary Authority of Singapore (MAS), clarified that Worldcoin does not currently perform a regulated payment service under the Singapore’s Payment Services Act 2019 (SG PS Act). However, individuals engaged in the buying or selling of Worldcoin accounts and tokens as a business may be in violation of the SG PS Act. The Police are investigating seven individuals suspected of involvement in such activities, which may constitute offenses under the SG PS Act.
Mr Gan further emphasized that consumers should be cautious about selling or transferring their Worldcoin accounts, as these could be misused for illegal activities such as money laundering and terrorism financing. The Singapore Police issued a public advisory on 7 August 2024 warning against such actions, highlighting the risks of criminal misuse.
Regarding data privacy, the Singapore’s Personal Data Protection Commission (SG PDPC), under the Singapore’s Personal Data Protection Act (SG PDPA), oversees the protection of personal information, including biometric data. Organisations handling such data are required to implement proper security measures. Worldcoin, which collects biometric data as part of its user verification process, is subject to these regulations.
The government reiterated its commitment to ensuring that any potential risks related to Worldcoin’s operations, particularly around cryptocurrencies, data privacy, and scams, are closely monitored. The Singapore authorities have adopted a cautious yet vigilant approach toward Worldcoin’s operations, to safeguard the public while ensuring that new technologies and innovations comply with existing regulations. The Monetary Authority of Singapore, while confirming that Worldcoin is not currently offering a regulated payment service under the Payment Services Act 2019, has signaled that those engaged in trading Worldcoin accounts or tokens may still fall under the purview of the law. This proactive stance demonstrates the government’s focus on regulating crypto-related activities, preventing illicit use, and protecting consumers. The Singapore’s Personal Data Protection Commission continues to oversee compliance with the Singapore’s Personal Data Protection Act, particularly in relation to Worldcoin’s use of biometric data. The ongoing investigations and public advisories further highlight the authorities’ emphasis on curbing any unlawful activities.
The concern surrounding Worldcoin’s operations in Singapore is the potential misuse of biometric data and the risk of money laundering or terrorism financing through the sale and transfer of Worldcoin accounts. The collection of sensitive biometric data, such as iris scans, has raised questions about data privacy, security, and potential abuse. Furthermore, the illegal trading of Worldcoin accounts and tokens could allow bad actors to exploit the platform for laundering illicit funds or financing illegal activities, posing a significant risk to Singapore’s financial system. These concerns have led the government to warn against such practices and initiate investigations to ensure compliance with the law.
The Singapore Police are actively investigating cases where individuals are suspected of buying or selling Worldcoin accounts, which could potentially facilitate money laundering and terrorism financing. Public advisories have also been issued to warn consumers against selling their Worldcoin accounts or tokens, as these actions may lead to misuse and legal consequences.
