Global: Increased Global Scrutiny on Iris-Scanning Crypto Project Worldcoin

Worldcoin, a cryptocurrency project co-founded by Sam Altman, the CEO of OpenAI, which was launched in July, is facing heightened scrutiny from various governments worldwide.

Currently, nearly 2.3 million individuals globally have registered to have their irises scanned by Worldcoin’s “orb” devices in exchange for a digital ID and free cryptocurrency. Sam Altman asserts that this digital ID will enable users to demonstrate online that they are human, which will be particularly valuable in a future world primarily driven by artificial intelligence.

However, Worldcoin has been the subject of criticism from privacy advocates concerning its data collection practices. The project has stated that the biometric data collected is either deleted or stored in encrypted form. They also claim to be “committed” to cooperating with regulatory authorities.

Here are the latest developments regarding governmental actions:

ARGENTINA: In Argentina, where Worldcoin reports strong interest in its project, the Agencia de Acceso a Informacion Publica (AAIP), the data regulator, announced last month that it was launching an investigation into Worldcoin concerning its collection, storage, and utilization of personal data. In an August 7 letter, AAIP requested information from Worldcoin regarding the project, including risk mitigation measures and the legal basis for processing personal data.

BRITAIN: The Information Commissioner’s Office in the UK stated in July that it would investigate Worldcoin. The regulator remarked, “We note the launch of Worldcoin in the UK and will be making further enquiries.”

FRANCE: France’s data watchdog CNIL conducted “inspections” at Worldcoin’s Paris office during the week of August 31. CNIL had previously expressed awareness of the Worldcoin project and indicated that the legality of its biometric data collection “seems questionable.”

GERMANY: A German data watchdog has been investigating Worldcoin since late last year due to concerns related to its extensive processing of sensitive biometric data. Additionally, Germany’s financial regulator, Bafin, is reportedly conducting an investigation into the digital currency, as reported by German business daily Handelsblatt.

KENYA: In August, Kenya temporarily suspended Worldcoin’s local activities while the government evaluates potential risks to public safety. A preliminary review had raised concerns, including those related to obtaining consumer consent in exchange for a monetary reward, which was seen as potentially coercive, according to the Communications Authority of Kenya and the Office of the Data Protection Commissioner.

PORTUGAL: Portugal’s data regulator, the CNPD, has conducted an inspection of Worldcoin’s local data collection operations and has been in communication with the Bavarian data protection authority in Germany, as stated by a spokesperson. The CNPD has indicated that it will make the results of its inquiry public “in due time.”