Nikolas Sargeant
Worldcoin faces renewed scrutiny over its "proof of personhood" initiative in Europe, which aims to expand its user base by verifying individuals' humanity through iris scans.
The project, boasting over 4.5 million sign-ups from 120 countries according to the Worldcoin website, has encountered regulatory roadblocks.
Worldcoin Ordered to Halt Biometric Data Collection
Reuters reports that Portugal's data regulator, CNPD, has directed Worldcoin to suspend its personal data collection for a period of 90 days.
CNPD highlights significant risks to citizens' data protection rights, prompting immediate action to forestall potential harm. Notably, over 300,000 individuals in Portugal have already submitted their biometric data to Worldcoin.
In response, Tools for Humanity, the primary software contributor to Worldcoin, asserts via email that the project adheres strictly to all relevant laws and regulations governing biometric data collection and transfer.
Jannick Preiwisch, Worldcoin Foundation's data protection officer, underscores the foundation's respect for the authority and responsibilities of data protection entities like CNPD. Preiwisch acknowledges CNPD's report as the initial communication on these issues, including concerns about underage sign-ups in Portugal, which the foundation condemns and is actively addressing with zero tolerance.
CNPD clarifies that the directive to suspend data collection is temporary, aimed at facilitating further investigation and analysis of complaints.
Worldcoin Under Regulatory Scrutiny
Worldcoin recently introduced "Personal Custody," a feature designed to relinquish storage and encryption of biometric data, granting users enhanced control over their personal information. Tiago Sada from Tools for Humanity asserts that this update empowers users, providing them with peace of mind regarding their data.
According to Sam Altman, CEO of OpenAI and co-founder of the company behind Worldcoin, the project seeks to establish a global identity and financial network. Despite its ambitions, Worldcoin grapples with regulatory hurdles.
Privacy advocates, such as the UK-based Big Brother Watch, express reservations about the collection of personal data, particularly biometric information, citing concerns about potential data breaches or misuse. Madeleine Stone, a senior advocacy officer at Big Brother Watch, warns that digital ID systems often fail to deliver promised benefits.
The heightened scrutiny has prompted regulatory actions in multiple countries. Spain's data protection regulator imposed a three-month ban on Worldcoin following complaints, while Kenya suspended its operations in August. The Bavarian state regulator is spearheading an investigation into Worldcoin under the European Union's data protection regulations due to the presence of a German subsidiary of Tools for Humanity, the entity behind Worldcoin.
