Worldcoin’s dance with controversy has spread to Singapore.
The eyeball-scanning crypto project co-founded by OpenAI’s Sam Altman has drawn attention from authorities in Singapore over alleged illegal trading of Worldcoin user accounts.
On Monday, Singapore’s deputy prime minister Gan Kim Yong warned the public against trading their “digital payment token wallet or World ID as these accounts could be misused by third parties.”
“The police are investigating seven subjects for their suspected involvement in offering the services of buying or selling Worldcoin accounts and tokens, which constitute offences under the Payment Services Act 2019,” Yong said in response to parliamentary questions concerning Worldcoin’s Singapore operations.
This is Worldcoin’s latest clash with authorities. It has previously faced similar crackdowns in Europe and across Asia.
Singapore probe
Crypto trading constitutes a payment service in Singapore, according to regulations set forth by the Monetary Authority of Singapore. Yong is also the chair of MAS.
While MAS doesn’t regard Worldcoin as a payment service business, Yong said entities that trade Worldcoin-related assets are regarded as payment service providers.
Besides the illegality of unlicensed persons trading Worldcoin accounts, Yong’s letter also said the police warned people against selling their accounts as they could be used for money-laundering and terrorism financing.
What is Worldcoin?
Altman and his co-founders at Tools for Humanity founded Worldcoin in 2019. Over the years it has raised over $240 million from venture capital giants like Andreessen Horowitz and Khosla Ventures.
Worldcoin’s goal, according to its white paper, is to create “a globally inclusive identity and financial network, owned by the majority of humanity.”
This proof of personhood is a necessity in the age of artificial intelligence, according to the founders. The project employs operators equipped with orbs that scan user’s eyeballs to create a digital identity unique to each individual.
For many, though, the project is seen less as a way to distinguish themselves from online AIs and more as a way to get token allocations on the project’s WLD token.
With over 6.6 million eyeballs scanned, Worldcoin potentially sits on top of a treasure trove of biometric data.
However, the project has also courted controversy. The Singapore probe is not an isolated incident.
Authorities in other jurisdictions have raised similar fears about the possibility of black market biometric data flooding cyberspace due to Worldcoin’s operations.
Officials in Hong Kong raided six Worldcoin orb operators in January amid personal data safety concerns associated with the project.
Spain and Portugal banned the project earlier this year, citing data privacy concerns. In Portugal’s case, Worldcoin had to state that it didn’t scan minors’ eyeballs publicly. Germany’s data watchdog has investigated the project since 2022.
Worldcoin was also the subject of a long-running investigation in Kenya that was eventually dropped by the country’s officials.
Worldcoin did not immediately respond to requests for comment.
Crypto market movers
Bitcoin is up 2.6% in the last 24 hours and is trading at $56,643.
Ether has gained 1.7% today to reach $2,326.
What we are reading
History shows SEC crackdown to ramp up as Gary Gensler seeks $2.6bn more for 2025 – DL News
Japan’s Metaplanet Snaps Up $2M In Bitcoin Amid Ongoing Buying Spree – Milk Road
The Harris-Trump Debate: Will the Candidates Discuss Crypto? – Unchained
Tether Invests $100M In Agriculture Amid Rising Stablecoin Competition – Milk Road
Why this crypto hedge fund favours Bitcoin ahead of the US election – DL News
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
