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HomeNewsWorldcoin Meets Regulatory Challenge and Surpasses 4 Million Users

Worldcoin Meets Regulatory Challenge and Surpasses 4 Million Users

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  • Spain’s AEPD temporarily suspends Worldcoin over privacy concerns, demanding immediate cessation of personal data collection.
  • Worldcoin defends its technology against accusations, highlighting a conflict with EU regulations and efforts to clarify its position.

The Worldcoin project is in the crosshairs of the Spanish authorities. The Spanish Data Protection Agency (AEPD) has placed a temporary halt, of up to three months, on Worldcoin operations in the country.

The measure comes in response to privacy-related concerns due to the project’s biometric data collection method, which includes iris scanning in exchange for a digital ID and cryptocurrency at no cost.

From Worldcoin’s perspective, this decision appears to contradict European Union regulations, claiming that inaccurate claims are being spread about its technology.

PrivacyConcernsand Institutional Responses

The origin of this controversy lies in multiple complaints filed with the AEPD, focused on the lack of adequate information, the collection of data from minors and the restriction to withdraw consent.

Worldcoin, which has attracted more than 4 million registrants globally for iris scanning through its “orb” devices, faces criticism on several international fronts for its personal data handling practices. This is reflected in critical voices from Argentina to Germany, questioning the collection, storage and use of this sensitive information.

Jannick Preiwisch, data protection officer at Worldcoin, highlights the lack of dialogue with the AEPD, marking a period of unsuccessful attempts to establish communication. However, he sees in this situation an opportunity to clarify the nature and legality of the technology Worldcoin is proposing.

On the other hand, the Spanish authorities argue that the processing of biometric data represents a high risk to individual rights, given its sensitivity, thus justifying the measures taken to prevent potential and irreversible damage.

International Dialogue and Cooperation in Progress

Worldcoin is not in a vacuum, however. The company has held talks with the state data agency in Bavaria, where its owner, Tools for Humanity, has a German subsidiary.

These discussions are part of a broader investigation within the EU, led by Bavaria since November 2022. According to Michael Will, president of the Bavarian agency, this process is expected to culminate soon with a final assessment that will be shared with European colleagues.

Meanwhile, other regulators, such as Portugal’s data authority, are in consultation with Bavaria, assessing Worldcoin’s compliance with the General Data Protection Regulation (GDPR).

Innovation Versus Regulation: The Way Forward

Sam Altman, behind Worldcoin, envisions a future in which digital identification facilitated by his project will play a crucial role, especially in an environment dominated by artificial intelligence.

Backed by major names in venture capital such as a16z crypto and Bain Capital Crypto, the project is not lacking in support or vision. However, the road to innovation is often fraught with regulatory challenges, especially when it comes to emerging technologies that brush up against privacy and personal data security.

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: info@ethnews.com Phone: +49 160 92211628
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