Global: French Regulatory Authority Conducts Inspection at Worldcoin Paris Office

France’s data regulator, CNIL, conducted an inspection at the Paris office of Worldcoin, a digital identity and cryptocurrency platform co-founded by OpenAI CEO Sam Altman, as part of an ongoing CNIL investigation into the company’s data privacy practices.

As reported by Reuters on Thursday (August 31, 2023), CNIL had initially raised concerns in July regarding Worldcoin’s collection and storage of biometric data, which it deemed as “questionable” under the EU’s General Data Protection Regulation (GDPR).

The Worldcoin Foundation, the entity overseeing the project’s operations based in the Cayman Islands, stated that it is open to addressing any questions concerning the project’s objectives and technology.

Apart from the GDPR-related allegations, Worldcoin faced criticism for its policy of requiring users to provide an iris scan in exchange for a digital ID, and in some countries, a different type of digital currency. Worldcoin’s website claims that over the past two years, more than 2.1 million people have participated in the service.

A CNIL spokesperson mentioned that this investigation is part of the regulator’s broader efforts to ensure that companies across Europe are adhering to data protection regulations.

The French watchdog expressed doubts about the legality of data collection and the storage conditions of biometric data.

The Bavarian Data Protection Authority is also collaborating with CNIL on this investigation, emphasizing the gravity of the matter and the joint effort to address it.

Worldcoin believes that it can rectify these issues while complying with GDPR regulations. In a statement provided to Reuters, Worldcoin emphasized its commitment to user and industry security, stating that “Security is at the core of our mission.”

This development underscores the European Union’s strong commitment to safeguarding personal data, with CNIL and its counterparts rigorously examining companies like Worldcoin. The outcome of the investigation and the acceptability of Worldcoin’s data gathering and storage methods remain uncertain.