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Cryptocurrency News Articles

Portugal Suspends Worldcoin's Biometric ID Scheme Over Privacy Concerns

Mar 26, 2024 at 10:57 pm

Portugal suspends Worldcoin's biometric scheme due to privacy concerns. The country's regulator halts data collection for 90 days, raising doubts about the project's viability. The decision follows allegations of privacy violations linked to Worldcoin's iris scanning devices.

Portugal Suspends Worldcoin's Biometric ID Scheme Over Privacy Concerns

Is Worldcoin's Biometric Identity Scheme Stalling in Europe?

Portuguese regulators have thrown a wrench in Worldcoin's "proof of personhood" scheme, ordering the company to cease data collection for 90 days. The move raises questions about the viability of Worldcoin's biometric-based digital identity system.

What Happened?

On March 26, Portugal's National Data Protection Commission (CNPD) issued a suspension order against Worldcoin, citing concerns over data protection violations. The regulator alleges that Worldcoin's iris scanning devices pose a significant risk to citizens' privacy rights.

What's Worldcoin All About?

Worldcoin aims to create a universal digital identity system by combining Bitcoin with facial recognition technology. Founded in 2019, the project has registered over 4.5 million users in 120 countries. Participants receive a free digital ID and cryptocurrency in exchange for allowing their faces to be scanned.

Why the Concerns?

According to the CNPD, over 300,000 Portuguese citizens have shared their biometric data with Worldcoin. Regulators are concerned about the:

  • Lack of informed consent: Worldcoin allegedly failed to adequately inform users about the data it collects and how it will be used.
  • Data retention: Users are not able to erase their data or withdraw consent once it has been collected.
  • Minors' data: Worldcoin has reportedly collected data from minors without proper parental consent.

Worldcoin's Response

Worldcoin maintains that it adheres to all data protection laws and regulations. Data protection officer Jannick Preiwisch claims the company has not heard from the CNPD about many of the concerns raised. Worldcoin has introduced a "Personal Custody" feature that allows users to control their data, including deletion.

Scrutiny Intensifies

The CNPD's suspension order highlights the growing scrutiny of biometric-based data collection. Regulators worldwide are focusing on ensuring that companies secure personal data adequately and obtain informed consent before collecting it.

What's Next?

Worldcoin's future in Europe is uncertain. The suspension order will give the CNPD time to investigate further and determine whether the company's practices comply with data protection regulations. The outcome of this investigation could have implications for the viability of Worldcoin's global identity scheme.

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Other articles published on May 09, 2025