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Singapore has issued a warning to its citizens against Worldcoin and World ID at a time when crypto ownership in the city-state is falling.
On Monday, Deputy Prime Minister Gan Kim Yong advised the public against trading their “digital payment token wallet or World ID as these accounts could be misused by third parties.”
Yong made the remarks in response to parliamentary questions concerning Worldcoin’s Singapore operations.
“The police are investigating seven subjects for their suspected involvement in offering the services of buying or selling Worldcoin accounts and tokens, which constitute offences under the Payment Services Act 2019,” Yong added.
Worldcoin, which has placed its ID-collecting orbs around Singapore, responded by saying, “[n]either Worldcoin nor Tools for Humanity are under investigation by police in Singapore. Individuals being investigated by authorities for possible violation of the Payment Services Act are not affiliated with Worldcoin or its operations in any way."
The spokesperson added, “The Worldcoin Foundation in Singapore, and around the world, operates in compliance with relevant laws and regulations pertaining to all aspects of the Worldcoin project including the Payment Services Act in Singapore."
Worldcoin Pumps... And Dumps
A Straits Times article in July revealed that migrant workers in Singapore were being paid $45 in cash to hand over control of their Worldcoin accounts and tokens to agents who "do not appear to be directly affiliated to Worldcoin" at Worldcoin orb locations.
“No one is forced into this. Many of us do it because everyone wants money,” the anonymous migrant worker said.
In August, MIMOS, the applied research and development arm of the Malaysian Government, signed an MoU with the Worldcoin Foundation, Tools for Humanity (TFH) and e-government services provider MyEG, to integrate Worldcoin technology into the country’s digital infrastructure.
The partnership will assess the feasibility of potential local manufacturing of Orbs, TFH's hardware and software tools for human verification.
Blockhead
Worldcoin was accused of insider trading in July as its token, WLD jumped 55% in five days after announcing a delay extension of the unlock schedule for 80% of WLD tokens allocated to its investors and team members.
A Worldcoin spokesperson has since told Cointelegraph that the firm has "zero tolerance" for insider trading.
“The Worldcoin Foundation and contributor Tools for Humanity take any allegation of insider trading, even if unfounded and unsubstantiated, seriously and would have zero tolerance for such activity if it were to occur,” the spokesperson said.
Blockhead
Singapore's Shrinking Crypto
According to a study by Gemini and Data Driven Consulting Group, crypto ownership in Singapore has declined 26% in 2024 from 30% in a study done in 2022.
Conversely, crypto ownership rose from 20% to 21% in the US, from 16% to 18% in France, and remained the same in the UK at 18%.
"It's important to note that crypto ownership trends have been influenced by global factors, including price volatility, market corrections and the collapse of notable players in the industry, which have caused some investors to be more cautious," Saad Ahmed, head of Asia at Gemini, told Nikkei Asia.
43% of those polled in Singapore sold off crypto investments within the past year while 30% of digital asset owners sold their crypto holdings because they lost money.
Singapore has also amended its Casino Control Act to allow cashless gaming in its two casinos but reiterated that cryptocurrencies remain prohibited.
Minister of State for Home Affairs and Social and Family Development, Sun Xueling, emphasized in parliament that the Gambling Regulatory Authority does not plan to permit cryptocurrency as a form of payment for casino gambling. The reason cited is the potential risk of money laundering associated with cryptocurrencies.
