BayLDA Takes On Worldcoin

The Bavarian State Office for Data Protection (BayLDA), a German privacy watchdog, ordered Worldcoin to delete users’ biometric data. The company has appealed the decision.

Bavarian State Office for Data Protection (BayLDA) has ordered Worldcoin to delete users’ biometric data, a move that could hamper the company’s operations in the European Union.

Worldcoin, a digital identity project, collects iris scans and other biometric data from millions of users. The company’s practices have come under scrutiny from privacy watchdogs, including BayLDA.

In a press release, BayLDA announced the results of its investigation into Worldcoin’s operations. The office found that the company had failed to obtain explicit consent from users for the collection and processing of their biometric data, in violation of the General Data Protection Regulation (GDPR).

“The company will be obliged to provide a deletion procedure that complies with the provisions of the GDPR within one month of the decision taking effect. Worldcoin will be obliged to provide explicit consent… in the future. Moreover, the deletion of certain data records previously collected without a sufficient legal basis was ordered ex officio,” the statement reads.

Worldcoin has appealed the BayLDA decision and published a response on its official blog. The company claims that the investigation’s results “largely pertain to outdated operations and technologies that have been replaced in 2024.”

“The investigation was opened in early 2023 and pertained to Worldcoin’s operations at the time, which included collecting and storing a Proof-of-Humanity (PoH) scan of users’ irises and collecting users’ phone numbers to facilitate the distribution of the Worldcoin (WDC) token,” the blog post reads.

“Since then, Worldcoin has made significant advancements in its technology and operations, including the introduction of new and improved privacy-preserving techniques, the deprecation of iris scanning, and the launch of the WLD token, which is now the primary token used within the Worldcoin ecosystem.”

Worldcoin added that it is “confident in the legality and regulatory compliance of its current operations.”

The German financial authorities have taken a stricter approach to cryptocurrency in recent months. In July, the government sold its entire stash of Bitcoin, and regulators have since initiated a large-scale exchange crackdown.

The BayLDA statement already acknowledged that Worldcoin is appealing the decision and is unlikely to accept the challenge without a fight.

The investigation began early in 2023 and is only now publishing its findings. Whatever legal battle unfolds between Worldcoin and the BayLDA, the possible outcomes are currently hard to predict.