Spanish Regulator Orders Worldcoin to Halt Data Collection
The Spanish data protection regulator, AEPD, has instructed Worldcoin to cease the collection of personal data in the country through scans and to refrain from using any data that has already been obtained. This action comes after numerous complaints were filed against Worldcoin since last summer, raising concerns about the adequacy of information provided by the project regarding data processing, gathering data from minors, and the lack of provision for withdrawing consent. Worldcoin has been given 72 hours to demonstrate compliance with the directive.
Worldcoin Crackdown in Spain
Spain has taken action to halt Worldcoin for a period of three months, marking another setback for Sam Altman’s controversial crypto project. The project has faced criticism for collecting customers’ personal information through an eyeball-scanning device called an “orb” in its aim to establish a proof-of-personhood system. However, regulators and privacy advocates worldwide have expressed concerns about the lack of transparency surrounding Worldcoin’s data collection methods.
AEPD director Mar España Martí stated that Spain is the first European nation to take action against Worldcoin, driven by particular concerns regarding the company’s data collection on minors. She emphasized that this issue affects citizens across all EU countries and calls for coordinated action.
The General Data Protection Regulation (GDPR) oversees the processing of personal data within the European Union and requires entities handling such data to have a legitimate legal basis for their activities. Failure to comply with GDPR regulations can result in fines of up to 4% of annual global turnover.
Setbacks
Worldcoin is facing scrutiny in Hong Kong as well. The Privacy Commissioner’s Office has conducted inquiries at six locations linked to the project amid concerns over potential breaches of privacy laws related to the handling of sensitive personal data.
In addition, Elon Musk has sued OpenAI, CEO Sam Altman, and President Greg Brockman for allegedly breaching the original contract. Musk and the CEO of X (formerly Twitter) claim that OpenAI has deviated from its goal of responsible AI development and has become overly influenced by its primary investor, Microsoft Corp.
In response, OpenAI has asserted that Musk’s actions stem from his unsuccessful attempts to integrate the company into Tesla Inc.
Hot Take: Worldcoin Faces Regulatory Scrutiny in Spain and Hong Kong
The Spanish data protection regulator has ordered Worldcoin to cease collecting personal data in the country and to stop using any data that has already been obtained. This comes after complaints were filed regarding Worldcoin’s data processing practices, particularly concerning the collection of data from minors and the lack of consent withdrawal provision. Spain is the first European nation to take action against Worldcoin, highlighting concerns about the company’s data collection methods.
Worldcoin is also facing scrutiny in Hong Kong for potential breaches of privacy laws related to the handling of sensitive personal data. Additionally, Elon Musk has sued OpenAI, accusing them of deviating from their original mission and becoming overly influenced by Microsoft. These setbacks underscore the challenges faced by Worldcoin as it tries to establish itself in the crypto industry.
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