In a significant move, Spain has imposed a three-month ban on Worldcoin, a venture led by Sam Altman, citing privacy risks associated with its unique approach to digital identification. The company, known for its “orb” devices that scan users’ irises in exchange for a digital ID and free cryptocurrency, has faced criticism globally for its data collection practices.
The Spanish data protection regulator, AEPD, issued the ban on Wednesday, demanding an immediate halt to the collection of personal information by Worldcoin and instructing the company to cease using already gathered data. The AEPD’s action follows several complaints, including concerns about insufficient information, data collection from minors, and issues related to consent withdrawal.
Worldcoin fired back at the ban, accusing the AEPD of “circumventing EU law” and spreading “inaccurate and misleading claims about our technology.” The project boasts over 4 million participants from 120 countries who have willingly undergone iris scans, according to the company’s website.
Jannick Preiwisch, Worldcoin’s Data Protection Officer, expressed gratitude for the opportunity to help the AEPD understand the technology’s essential and lawful aspects. Preiwisch claimed that the company’s attempts to engage with the AEPD had gone unanswered for months.
The AEPD, referencing the European Union’s General Data Protection Regulation (GDPR), highlighted the high risks associated with the processing of biometric data, emphasizing the need for urgent measures to prevent potential irreparable damage to individuals’ rights.
Worldcoin has been in communication with Bavaria’s state data agency, where its owner, Tools for Humanity, has a subsidiary. Bavaria is leading the EU investigation into Worldcoin, with President Michael Will indicating that a final evaluation would be presented to European colleagues soon.
Portugal’s data authority is collaborating with Bavaria to assess Worldcoin’s GDPR compliance, while the UK Information Commissioner’s Office emphasized the need for organizations to conduct Data Protection Impact Assessments and have a clear lawful basis for processing personal data.
Despite the controversy, Sam Altman remains optimistic about Worldcoin’s ID, asserting that it will enable users to prove their humanity in a future world dominated by artificial intelligence. Backed by prominent venture capital firms such as a16z crypto and Bain Capital Crypto, Worldcoin’s future in the EU remains uncertain as regulatory scrutiny continues.
(With inputs from Reuters)
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Published: 07 Mar 2024, 03:34 PM IST