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While the crypto project itself is not involved in the trading of its users’ data, others who engage in purchasing and reselling Worldcoin accounts and tokens may be illegally offering payment services under the PS Act, raising concerns about the potential misuse of digital identities for malicious purposes, such as money laundering.
Key Notes
Singapore authorities are investigating seven individuals suspected of illegally trading Worldcoin accounts and tokens, raising concerns about potential misuse of digital identities.The case adds to the global scrutiny surrounding Worldcoin as concerns over privacy violations and illegal financial activities grow. .Singapore authorities have launched an investigation into seven individuals allegedly involved in the illicit trading of Worldcoin WLD $1.45 24h volatility: 2.8% Market cap: $618.50 M Vol. 24h: $171.45 M accounts and tokens to third-party agents, a move signaling the nation’s crackdown on illegal crypto activities.
Deputy Prime Minister Gan Kim Yong announced the investigation on September 9, revealing that the suspects are accused of offering services to buy and sell Worldcoin accounts, which may have violated the country’s Payment Services Act 2019 (PS Act). The law mandates that only licensed entities or exempted individuals can engage in such transactions.
Potential Violations of the PS Act
During a parliamentary session on Monday, Minister Gan responded to inquiries raised by Ms. Rachel Ong and Mr. Derrick Goh about the regulation of Worldcoin’s operations in Singapore and whether there are laws in place relating to the sale of Worldcoin accounts to third-party agents for monetary incentives.
He clarified that such businesses are regulated under the Payment Services Act. However, according to the Monetary Authority of Singapore (MAS), Worldcoin itself is not involved in the sale of accounts.
While the crypto project itself is not involved in the trading of its users’ data, others who engage in purchasing and reselling Worldcoin accounts and tokens may be illegally offering payment services under the PS Act, raising concerns about the potential misuse of digital identities for malicious purposes, such as money laundering.
As a result, the Singapore police have launched an investigation into seven individuals suspected of conducting these illicit transactions.
Authorities are working to gather more information on the individuals involved in the case. If found guilty, the suspects could face significant legal consequences, including fines and imprisonment, under Singapore’s strict financial regulations.
Public Warnings on the Sale of Digital Identities
The investigation follows earlier warnings from Singapore’s authorities about the dangers of selling Worldcoin accounts. On August 7, police issued a public notice advising citizens against selling their digital identities or transferring them to others. The authorities emphasized that such actions could lead to serious criminal activities, potentially implicating sellers in illegal schemes.
That same month, authorities arrested five individuals involved in the trade. According to the announcement, the individuals, four males, and one female, provided payment services without a license.
Meanwhile, the investigation into Worldcoin’s account trading in Singapore reflects growing international scrutiny of the blockchain project. Worldcoin, which verifies user identities through iris scans, has faced criticism and legal challenges in several countries over privacy concerns.
The project is currently under fire in Hong Kong, where authorities are investigating its operations to determine whether the crypto project, owned by Sam Altman, violated the country’s federal privacy laws.
Additionally, Colombian authorities are investigating the project for potential privacy breaches. Other countries, such as Kenya, have previously launched probes into the project but recently dropped their investigation.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
