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Cryptocurrency News Articles

Worldcoin Halts Spain Operations Until End of Year or German Regulator Completes Audit

Jun 06, 2024 at 05:30 am

Worldcoin has announced a suspension of its activities in Spain until the end of the year or until the German authority overseeing its operations under the European Union's General Data Protection Regulation (GDPR) completes its audit.

Worldcoin Halts Spain Operations Until End of Year or German Regulator Completes Audit

Worldcoin has announced a suspension of its activities in Spain until the end of the year or until the German authority overseeing its operations under the European Union’s General Data Protection Regulation (GDPR) completes its audit.

This move follows a decision by Tools for Humanity, a key contributor to Worldcoin, to voluntarily extend the pause of its orb operations in Spain.

OpenAI CEO Sam Altman, co-founder of Tools for Humanity, spearheads the Worldcoin project, which aims to establish a system where individuals can verify their humanity. Participants receive WLD tokens as an incentive to have their eyeballs scanned by an orb, creating a World ID that verifies their personhood.

As the internet evolves, companies like Tools for Humanity emphasize the need for digital identities to differentiate humans from AI-powered agents, or bots.

However, the Worldcoin project has faced scrutiny from various government agencies due to concerns about personal data protection.

The Spanish Data Protection Agency (AEPD) initially ordered Worldcoin to cease its operations in Spain in March.

On Tuesday, the AEPD reiterated its stance on Worldcoin’s suspension, stating that Tools for Humanity has committed not to resume activities in Spain until the year’s end or until the Bavarian Data Protection Authority (BayLDA) issues a final resolution regarding the company’s data processing practices.

BayLDA, the primary authority on data processing under the GDPR, has been working with Tools for Humanity for over a year.

In response to privacy concerns, Worldcoin has implemented several measures to assure data privacy advocates of its commitment to protecting biometric data.

Worldcoin Introduces “Personal Custody” for New Signups

In March, the token introduced “Personal Custody,” which prevents new signups from having their biometric data stored and encrypted. The project also allowed existing users to request the deletion of their iris code and barred individuals under 18 from signing up.

Despite these challenges, Worldcoin maintains significant support in Spain. A recent survey revealed that over 80% of the 21,000 World ID users in Spain believe technologies like World ID are crucial for distinguishing between bots and humans online. Nearly 90% support the project’s return to Spain.

“While it is encouraging to see such strong support, we voluntarily offered to extend the pause on orb operations in Spain,” said Thomas Scott, Chief Legal Officer of Tools for Humanity.

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