Worldcoin Halts Biometric Data Collection in Portugal Amid Regulatory Concerns

Portuguese authorities have ordered Worldcoin to halt biometric data collection for 90 days, citing concerns over data protection rights. The project, which assigns cryptocurrency tokens to individuals after scanning their irises, has also faced suspension in Spain. Worldcoin has launched "Personal Custody," a process giving users direct control over their biometric data, and has open-sourced the main components of its Orb software for increased transparency.

Worldcoin Ordered to Halt Biometric Data Collection in Portugal

The Comissão Nacional de Proteção de Dados (CNPD), Portugal's data protection authority, has issued an order suspending the collection of biometric data by Worldcoin for a period of 90 days. The decision stems from concerns over the high risk to citizens' data protection rights posed by the project's "proof of personhood" initiative, which assigns cryptocurrency tokens to individuals after scanning their irises.

Project Background and Regulatory Challenges

Worldcoin, a project espoused by OpenAI CEO Sam Altman, aims to increase global digital inclusion by enrolling individuals using eye scans to confirm their humanity. However, the project has faced regulatory scrutiny in Europe. Last month, it was suspended in Spain for up to three months due to similar data protection concerns.

CNPD's Decision and Justification

According to the CNPD, over 300,000 individuals in Portugal have provided their biometric data to Worldcoin, prompting the authority to intervene to prevent potential harm. The organization cited concerns about the collection and processing of sensitive personal information, including the reporting of registrations involving minors.

Worldcoin's Response

In response to the order, Tools for Humanity, the software collaborator behind Worldcoin, has asserted that the project adheres to all applicable laws and regulations. Jannick Preiwisch, data protection officer at the Worldcoin Foundation, emphasized the organization's respect for data protection authorities and acknowledged the CNPD's concerns. He also noted that the organization has zero tolerance for minor registrations and is actively addressing the issue.

"Personal Custody" and User Control

To enhance user control over their biometric data, Worldcoin recently introduced "Personal Custody," a mechanism that eliminates the storage and encryption of such data by the project. Tiago Sada, an executive at Tools for Humanity, stated that this feature provides peace of mind by empowering users to manage their own data.

Global Registration and Crypto Distribution

Through the eye scanning process, Worldcoin establishes unique identities and grants users cryptocurrency tokens known as WLD. According to its website, more than 4.5 million people from over 120 countries have registered with the project.

Open-Sourcing of Orb Software

In a move towards transparency, the Worldcoin Foundation has open-sourced the core components of its Orb software, which is now publicly available on GitHub under the dual MIT/Apache 2.0 license. This decision aims to foster collaboration and community-driven development, while bolstering trust and accountability in the project's evolution.

Significance of Open-Sourcing

By open-sourcing Orb, the Worldcoin Foundation intends to ensure the transparency and verifiability of the software's privacy-enhancing features. Developers can now independently examine and contribute to the project's image processing capabilities, enhancing the public's understanding of the software's inner workings.

Conclusion

Worldcoin's "proof of personhood" project has encountered regulatory challenges in Portugal due to concerns over data protection. The CNPD's suspension order reflects the ongoing scrutiny of biometric data collection practices, particularly in the context of emerging technologies. Worldcoin's efforts to address these concerns through "Personal Custody" and the open-sourcing of Orb software demonstrate the organization's commitment to compliance and transparency. As the project evolves, it will be essential to monitor the regulatory landscape and ensure that data protection rights are adequately protected while promoting digital inclusion through responsible innovation.