Singapore Issues Caution on Trading Worldcoin Accounts Amid Investigation into Sam Altman’s Cryptocurrency Venture – DL News

As it tangles with legal challenges, Worldcoin has now caught the attention of Singaporean officials.

The crypto initiative that employs iris recognition technology, established by OpenAI co-founder Sam Altman, is under the Singaporean spotlight due to supposed illegitimate transactions of its user accounts.

Singapore’s deputy premier, Gan Kim Yong, cautioned inhabitants on Monday regarding the risks of monetizing their electronic wallet “World ID,” pointing out the potential misuse by external actors.

“Seven individuals are the focus of a police inquiry concerning their alleged involvement in the trading of Worldcoin profiles and tokens, acts that may breach the Payment Services Act of 2019,” Yong articulated in a statement following inquiries in parliament about Worldcoin activities within the nation.

This incident adds to an array of regulatory encounters Worldcoin has dealt with, spanning Europe to Asia.

After these developments were reported, a Worldcoin representative clarified to DL News that the company itself and its affiliate Tools for Humanity are not the subjects of police inquiries in Singapore.

The representatives targeted by the probe are not connected to Worldcoin or its operations. “Reports suggesting otherwise are incorrect and deceptive,” added the spokesperson.

The spokesperson confirmed that the Worldcoin Foundation adheres to all legal requirements, including the Payment Services Act in Singapore, within its global framework.

Investigation in Singapore

In Singapore’s regulatory landscape, chaired by MAS’s Gan Kim Yong, crypto transactions fall under the category of payment services. While Worldcoin is not recognized as a payment services enterprise by MAS, any entity dealing in Worldcoin-affiliated assets is classified as a payment service provider.

Moreover, Yong’s memo underscored the illegal nature of unsanctioned Worldcoin account trading and cautioned against such practices due to their potential for facilitating illicit financial activities.

About Worldcoin

Initiated in 2019 by Altman and others at Tools for Humanity, Worldcoin has attracted significant investment, securing funds exceeding $240 million from heavyweights like Andreessen Horowitz and Khosla Ventures.

Worldcoin aspires to carve out a universally accessible identity and economic system that the majority of humanity can own, delineated in its founding document.

According to its inventors, the necessity for a verifiable human presence stands crucial in an era heavily influenced by AI. Their approach involves the usage of spherical devices that scan participants’ eyes to establish individualized digital identities.

The ambit of this project is expansive, with over 6.6 million eyeballs scanned, rendering Worldcoin a vault of rich biometric information.

Yet, Worldcoin has been the center of contention. The inquiry in Singapore is just one such incident.

Worldcoin’s operational model has prompted concerns globally, with jurisdictions raising alarms over Black-market trading of biometric info.

For example, in Hong Kong, officials raided operations associated with Worldcoin over personal data security issues. European nations such as Spain and Portugal have halted the project, invoking privacy worries, with Germany probing the initiative since last year.

Kenyan authorities, after a thorough investigation, eventually dismissed their concerns regarding Worldcoin.

Cryptocurrency Trends

• Bitcoin’s value has risen by 2.6% within the past day; it is currently priced at $56,643.
• Ether has experienced a 1.7% surge today, reaching $2,326.

Editorial Suggestions

Update, Sept 10: This piece has been updated with comments from Worldcoin representatives.

Osato Avan-Nomayo is our correspondent based in Nigeria, focusing on DeFi and technology topics. For story tips or information, reach out to him at osato@dlnews.com.