In a move that underscores the growing regulatory scrutiny surrounding cryptocurrency ventures, Spain has taken action against Sam Altman‘s Worldcoin project. The Spanish data protection regulator, AEPD, has ordered Worldcoin to cease collecting personal data immediately and to halt the use of already gathered information.
Regulatory Action
The AEPD’s directive follows concerns raised regarding Worldcoin’s practice of using an eyeball-scanning “orb” to collect personal data. The regulator has given Worldcoin 72 hours to demonstrate compliance with the order. Notably, concerns were previously flagged about minors using the technology, leading to Worldcoin implementing new age verification measures.
Co-founded by Sam Altman in 2019, Worldcoin offers its cryptocurrency tokens in exchange for consent to scan individuals’ eyes. This scanning serves as a means of identification, particularly relevant as artificial intelligence advances and distinguishing between humans and machines becomes more challenging.
Global Setbacks
The Spanish regulator’s action adds to a series of setbacks faced by Worldcoin globally. Notably, the project avoided launching its tokens in the US due to regulatory constraints. Similar challenges have been encountered in major markets like China and India, with Kenya ordering the shutdown of Worldcoin operations last year.
Response from Altman
In response to growing scrutiny, Altman expressed openness to the possibility of Worldcoin existing without its cryptocurrency component. Despite these challenges, Worldcoin claims to have amassed 4 million users and attracted approximately $250 million in investments from notable backers including venture capital firms Andreessen Horowitz and Khosla Ventures.
Consumer Concerns
The project’s presence in Spain has drawn attention, with reports of queues forming at Worldcoin stands in shopping centers. The Basque country’s data protection watchdog, AVPD, issued a warning about the eye-scanning technology used by Worldcoin in a mall in Bilbao, emphasizing the need for compliance with biometric data protection regulations.
Spain’s regulatory action against Worldcoin reflects a broader trend of increased scrutiny and regulatory challenges facing cryptocurrency projects globally. While the project continues to navigate these obstacles, its ambitions to establish innovative means of identity verification in an era of advancing artificial intelligence remain at the forefront.
