Worldcoin, the cryptocurrency project led by Sam Altman, is under scrutiny in Singapore due to concerns about account sales and the use of biometric data for user identification.
The Monetary Authority of Singapore (MAS) has confirmed that while Worldcoin itself does not fall under the Payment Services Act 2019, individuals involved in the buying or selling of Worldcoin accounts or tokens as a business may be violating the Act. Singapore authorities are investigating seven individuals suspected of engaging in these activities.
The Payment Services Act 2019 is a regulatory framework in Singapore designed to oversee and regulate payment systems and digital payment services. It aims to enhance consumer protection, promote innovation, and mitigate risks such as money laundering and terrorism financing.
The Act covers various payment-related activities, including digital payment tokens, e-wallets, remittances, and merchant acquisition services. Entities providing these services must comply with licensing requirements and adhere to regulations on security, data protection, and anti-money laundering measures.
A public advisory has been issued, warning against the sale or transfer of Worldcoin accounts, as such actions could facilitate criminal activities such as money laundering and terrorism financing. The Personal Data Protection Commission (PDPC) has also raised concerns about the collection and handling of biometric data, specifically iris scans, urging organizations to implement strong data protection measures.
The scrutiny comes amid similar concerns globally. For example, earlier this summer, Worldcoin was fined 194 million pesos (about $203,000 USD) by the Buenos Aires Province for mishandling biometric data, specifically iris scans. The fine, imposed by the Ministry of Production, Science, and Technological Innovation, highlighted irregularities in Worldcoin’s data protection practices, including unclear age limits and problematic contract clauses.
Source: FinTech Singapore
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September 10, 2024 – by Ali Nassar-Smith
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