Crypto Project Worldcoin Sparks Controversy in Ecuador
Worldcoin, a crypto project co-founded by OpenAI’s CEO Sam Altman, made its way to Ecuador earlier this year. However, the project has faced significant backlash and warnings from Ecuadorian authorities regarding its operations and the risks associated with cryptocurrencies.
Worldcoin’s Expansion and Popularity in Ecuador
Recently, Worldcoin announced the introduction of its World ID verifications in Ecuador, available at selected locations in Quito and Guayaquil. The project garnered attention among Ecuadorians, with many citizens lining up daily to undergo iris scans for verification purposes. While the project attracted a large number of users, reports surfaced suggesting that some individuals felt compelled to participate due to financial constraints.
- Reports revealed instances where users were not adequately informed before consenting to the iris scanning process.
- Some users received WLD tokens worth $30 after completing the verification, with additional earnings possible through referral programs.
- Amidst the controversy, the Data Protection Superintendency refuted claims that the project had informed Ecuadorian authorities about its activities.
Ecuadorian Authorities Stand Firm on Cryptocurrency Regulations
Ecuadorian regulatory bodies, including the Superintendence of Companies and the Central Bank, have reiterated their stance on cryptocurrencies following Worldcoin’s expansion in the country. The authorities emphasized that cryptocurrencies are not recognized as legal tender in Ecuador and warned citizens against engaging with unregulated crypto projects.
- The Superintendence of Companies expressed concerns about irregular activities related to Worldcoin and advised against sharing biometric information in exchange for incentives.
- Additionally, the Central Bank reaffirmed that cryptocurrencies are not authorized means of payment and declared that all financial transactions in the country must be conducted in US dollars.
Implications of Cryptocurrency Usage in Ecuador
Ecuador’s Central Bank made it clear that any use of unauthorized means of payment, including cryptocurrencies, could result in legal action. The strict regulatory framework aims to protect consumers and maintain the stability of the country’s financial system.
The ECB is prepared to investigate and sanction individuals or entities using crypto assets as a payment method, in violation of existing regulations.
By
By
By
By
By