Singapore’s Deputy Prime Minister and chair of the Monetary Authority of Singapore (MAS), Gan Kim Yong, has announced a probe into seven individuals suspected of engaging in illicit transactions involving Worldcoin accounts and tokens. This investigation, revealed on September 9, focuses on allegations that these individuals have been buying and selling Worldcoin accounts in a manner that could contravene the Payment Services Act of 2019.
Regulatory Concerns
Yong highlighted that Worldcoin does not qualify as a certified payment service under the PS Act, raising concerns that the trading of WLD accounts and tokens might constitute unauthorized payment service operations. Such activities, he warned, could facilitate illegal operations such as money laundering and terrorism financing. Yong urged consumers to be cautious of offers that could lead to unauthorized access or misuse of their digital payment token wallets or World IDs.
Global Scrutiny and Privacy Issues
This investigation in Singapore is part of a broader wave of global regulatory scrutiny facing Worldcoin. Over the past year, authorities in Kenya, South Korea, and Germany have also scrutinized the company, particularly focusing on its use of iris biometric data and potential breaches of local data privacy regulations.
Worldcoin’s Response and Future Plans
Despite these regulatory challenges, Worldcoin remains committed to regulatory compliance and transparency. The company has introduced several new privacy features designed to bolster user data protection and address regulatory concerns. These updates include:
Personal Custody: A new feature utilizing Zero-Knowledge Proofs (ZKPs) to verify transactions without revealing sensitive details like transaction amounts or participant identities. This technology aims to enhance transaction security and user privacy.
Unverify World ID: Users now have the option to permanently erase their iris codes, which deactivates their World ID and initiates a mandatory six-month cooling-off period. After this period, the iris code is permanently removed, providing additional privacy safeguards.
Age Verification: On-site age verification has been implemented to ensure that only individuals aged 18 and above can access the platform, further enhancing the security and integrity of the network.
Worldcoin co-founder Alex Blania has ambitious plans for the platform, aiming to expand its user base to a scale comparable to major social networks like Facebook. Despite the current regulatory hurdles, the company reports a recent increase in WLD token value, which has risen over 4% in the past 24 hours, reaching $1.66.
These privacy and security enhancements reflect Worldcoin’s ongoing efforts to address regulatory concerns while advancing its vision of widespread adoption and user empowerment in the cryptocurrency space.
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