Altcoin

Worldcoin Faces Singapore Probe Over Illicit Account Sales

Published

7 months ago

September 10, 2024

Coin2049 Newsletter

Singapore’s Deputy Prime Minister and chair of the Monetary Authority of Singapore (MAS), Gan Kim Yong, announced an investigation into seven individuals on suspicions of illicit trade in Worldcoin accounts and tokens.

The announcement came on September 9, stating that the individuals are suspected of buying and selling these accounts and tokens, actions that could violate the Payment Services Act of 2019.

Worldcoin Faces Singapore Probe

Yong emphasized that the MAS does not consider Worldcoin a certified payment service according to the provisions of the PS Act. He further explained that trading WLD accounts and tokens could potentially qualify as operating a payment service, which might be unlawful and could facilitate crimes such as money laundering and terrorism financing.

Yong also issued a warning to consumers, advising them to be vigilant about offers that could lead to the unauthorized use of their digital payment token wallets or World IDs, as these could be exploited by others. He strongly cautioned against transferring access to these accounts.

The scrutiny of Worldcoin in Singapore is part of a series of global legal challenges the company faces. In the last year, regulatory bodies in countries such as Kenya, South Korea, and Germany have initiated investigations into the coin’s use of iris biometric data, concerned with possible violations of local data privacy laws.

Striving for Transparency and Expansion Despite Regulatory Hurdles

Despite these challenges, the coin maintains that it complies with both local and international regulations. The company has taken steps to enhance transparency and protect user data by making key elements of its technology open-source.

Worldcoin co-founder Alex Blania has set ambitious goals for the platform, aiming to expand its reach to a level comparable to Facebook, which he believes will enhance its utility. According to the project’s website, the AI cryptocurrency has already amassed over 6 million registered users across more than 160 countries.

The value of WLD price has seen a recent uptick, rising over 4% in the last 24 hours, with its trading price standing at $1.66 at the latest update.

Introducing ‘Personal Custody’ and ‘Unverify World ID’ Option

Before Singapore’s scrutiny, the coin has rolled out new privacy features in response to increased regulatory scrutiny, aiming to enhance user empowerment and network integrity. At the heart of these updates is the introduction of “Personal Custody” and a new “Unverify World ID” option. Utilizing state-of-the-art Zero-Knowledge Proofs (ZKPs), this innovative feature allows for transaction verification without exposing sensitive information such as transaction amounts or participant identities. The integration of ZKPs guarantees secure and private transactions, protecting users’ financial privacy against external observation.

Additionally, World ID holders now have the option to permanently erase their iris code, which deactivates their World ID. This deletion initiates a mandatory six-month “cool-off” period designed to reduce fraud risks. After this period, the user’s iris code is irreversibly removed, enhancing privacy protections further. Worldcoin has also implemented on-site age verification to ensure that only individuals aged 18 and above can access the platform. These robust privacy enhancements not only signify a major development for the cryptocurrency but also reflect its commitment to prioritizing user-centric innovation.