Spanish Authorities Order Worldcoin to Halt Data Collection Amid Privacy Concerns

The Spanish Agency for the Protection of Data (AEPD) has ordered Worldcoin, an open-source crypto blockchain that focuses on privacy-preserving human identity, to end mass data collection and stop using data previously collected in the country.

The Spanish authorities are worried that Worldcoin’s scanning system can put individual privacy at risk.

According to the AEPD, Worldcoin’s scanning technology poses risks to Spanish citizens, particularly the minors. To protect users’ privacy, the agency issued precautionary measures and gave Worldcoin 72 hours to comply with the order.

The order, as translated, states:

“The AEPD, which demands the cessation of the collection and processing of special categories of personal data as well as the blocking of those already collected, has received several complaints denouncing, among other aspects, insufficient information, the collection of data from minors or that the withdrawal of consent is not allowed.”

OMG DATA!

Debuted in 2021, Worldcoin quickly caught the eyes of the crypto and tech communities as the project was co-founded by Sam Altman, CEO of OpenAI, the developer behind the most controversial AI tool ChatGPT.

With the assistance of the blockchain technology, Worldcoin can collect individual data through “Orb,” a device created to scan users’ eyeballs to verify their identities and reward them with 25 WLD tokens.

Worldcoin has attracted a large number of users who have lined up to scan their eyeballs. The project also drew media attention and numerous users in Spain who queued up at booths in major shopping malls.

Although the project vows to never transmit iris images as well as permanently delete them after generating each digital identity, and to keep users’ data private, it still faces criticism from communities and governments worldwide.

The Spanish authorities are the latest to join this list. Other countries that previously voiced oppositions against Worldcoin’s iris scanning method is France, Germany, India, Brazil, Kenya, and the US.

The project has recently been under Hong Kong authorities’ scrutiny over suspicious violation to the ordinance on user personal data. In addition, South Korean watchdogs reportedly launched an investigation into Worldcoin to determine whether the project misused users’ data or not.

The South Korea’s Personal Information Protection Commission, the agency in charge of the case, said that it would “take action” if violations are detected in accordance with the laws.

Data experts see iris as a form of biometrics, similar to fingerprints, which can contain sensitive data. Therefore, iris scanning is a potentially risky collection of personal data that requires compliance with national data protection regulations.

However, legal barriers do not stop Worldcoin’s footsteps, the project continues to improve its products. Worldcoin continuously made moves to upgrade its technology with World ID 2.0.”

Additionally, last month, OpenAI released Sora, an AI text-based video creation tool. The arrival of Sora immediately swept the Internet and drove the number of user registrations. The WLD token also rocketed to $9.4.

At the time of writing, WLD is trading at almost $7, up 220% in the last 30 days, according to CoinGecko’s data.

Amid AI battle with Elon Musk

The recent regulatory roadblock comes amid the legal battle between OpenAI and Elon Musk, CEO of X (formerly Twitter). Earlier this month, Musk accused OpenAI and its CEO Sam Altman of breaching contractual agreements made during the company’s founding in 2015.

Musk claimed that the team abandoned the company’s original mission of developing artificial intelligence (AI) for the benefit of humanity for non-profit purposes. Now, they have developed ChatGPT with upgrade packages and these features force users to spend money to buy, which apparently violates the contract agreement.

Elon Musk co-founded OpenAI in 2015, but he left the board in 2018. Musk and his team are developing a separate AI tool called Grok, which enables real-time access to information on X.