Worldcoin Banned in Spain Amid Data Protection Investigation
Worldcoin, the cryptocurrency project co-founded by Sam Altman, has been banned in Spain for up to three months as the country’s data protection watchdog continues its investigation into the project. The Spanish data protection agency, AEPD, announced that it has ordered a precautionary measure against Tools for Humanity Corporation, the core developer behind Worldcoin. The company’s business model involves scanning people’s irises in exchange for cryptocurrency. The AEPD has received complaints about insufficient information, data collection from minors, and the inability to withdraw consent. In response to the ban, Worldcoin stated that it has been engaged with the Bavarian data protection authority for GDPR compliance.
The Ban and Worldcoin’s Response
In a statement on Wednesday, the Spanish data protection agency AEPD revealed that it has ordered a temporary ban on Worldcoin’s activities in Spain. The agency cited several complaints against Tools for Humanity Corporation regarding inadequate information, collection of data from minors, and the impossibility of withdrawing consent. As a result, the AEPD ordered Worldcoin to cease collecting and processing personal data and to stop using any information already collected. The regulator emphasized that the processing of biometric data carries high risks for individuals’ rights and should be subject to special protection under GDPR.
Worldcoin responded to the ban by posting a blog post on its website. The company expressed disappointment with the AEPD’s actions, accusing them of circumventing established procedures under GDPR and limiting their actions to Spain rather than considering the broader European Union. Jannick Preiwisch, data protection officer of the Worldcoin Foundation, stated that their attempts to communicate with the AEPD had gone unanswered for months. However, Preiwisch also expressed gratitude for the opportunity to help the AEPD better understand the technology and its lawful applications.
Following the ban, Worldcoin’s WLD token experienced a drop in value, reaching as low as $6.08. However, it later rebounded to $7.79, showing a 23.7% increase over the past 24 hours.
Heightened Regulatory Scrutiny
Worldcoin has faced regulatory investigations in various jurisdictions due to its business practice of scanning people’s irises. South Korea recently launched an investigation into Worldcoin following complaints about the project. In January, Hong Kong’s privacy watchdog conducted investigations at six Worldcoin premises, expressing concerns about personal data privacy risks. The UK’s data protection regulator announced its intention to inquire into the project after the launch of Worldcoin’s token in July. Bavaria’s State Office for Data Protection Supervision also expressed interest in the crypto project around the same time. Additionally, Kenya’s Ministry of the Interior suspended Worldcoin from operating in the country in August 2023.
Hot Take: Worldcoin Faces Ongoing Regulatory Challenges
Worldcoin continues to face significant regulatory challenges as various countries investigate its data collection practices involving iris scanning. The recent ban imposed by Spain’s data protection agency adds to the list of jurisdictions scrutinizing the project. With heightened concerns about privacy and consent violations, it is essential for Worldcoin to address these issues and comply with GDPR regulations to regain trust and credibility. Failure to do so may result in further bans and legal consequences for the project.
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