Controversial Crypto Venture, Worldcoin, Banned by Data Protection Authorities
The biometric technology company, Worldcoin, has been facing a series of bans in Europe, with Portugal being the latest to implement a three-month temporary ban on the company’s operations. This comes after a similar suspension order in Spain earlier this month. This recent ban leaves Germany as the only market in Europe where Worldcoin can continue operating its proprietary biometric orbs.
The Portuguese data protection authority, CNPD, issued the ban on Tuesday, after receiving multiple complaints about the company’s practices. One of the cited concerns was the scanning of children’s eyeballs without proper age verification in place. This is in line with the concerns raised by Spain’s DPA. Other issues included lack of transparency in data processing, inability for users to delete their data, and the company’s use of blockchain technology to permanently store sensitive biometric data.
“EU data protection law gives people in the region a suite of rights over their personal data, including the ability to have data about them corrected, amended or deleted. So there’s an inherent legal conflict with Worldcoin’s approach.”
– CNPD
The project, backed by Sam Altman, has been facing backlash for its controversial use of biometric data and its goal of creating an identity layer for “humanness”. Altman’s involvement with the company has raised concerns as he is also known for his involvement in generative AI tools that make it difficult to distinguish between artificial and human activity online.
- Rent collection on every online human on Earth?
The recent ban by CNPD was a response to “dozens” of complaints received last month regarding Worldcoin’s activities in Portugal. It is estimated that over 300,000 people have submitted to have their irises scanned by the company’s orbs in exchange for its cryptocurrency.
The Portuguese authority notes that the use of biometric data is considered a special category under GDPR, and is therefore subject to increased protection. Additionally, minors are particularly vulnerable and are entitled to special protection under national and European law. Without proper age verification measures in place, the CNPD argues that Worldcoin is not taking necessary steps to prevent children from accessing its technology.
“Given the current circumstances, in which there is an illegality in the processing of biometric data of minors, associated with potential violations of other GDPR standards, the CNPD understood that the risk to citizens’ fundamental rights is high.”
– Paula Meira Lourenço, President of CNPD
The Portuguese authority gave Worldcoin 24 hours to comply with the local stop processing order, which seems to have been implemented as the company’s website no longer includes Portugal as a country where eyeball scans can be booked. Germany remains the only European country in which Worldcoin can operate, alongside other countries such as Argentina, Chile, Japan, Singapore, and the US.
Coincidentally, Germany is also where Worldcoin developer, Tools for Humanity, has a base and its co-founder, Alex Blania, is German. The Bavarian DPA, who is responsible for investigating complaints against the company under the GDPR’s one-stop-shop mechanism, has yet to take any public intervention despite the urgent actions taken by peer authorities in Southern Europe.
The GDPR’s Article 66 powers, which were utilized by Spain and Portugal to issue temporary suspension orders, allow authorities to respond to urgent risks in cases where a lead authority is not acting or is taking too long to act.
- Will the Bavarian DPA take action?
- Will Worldcoin appeal the bans?
These are some of the questions still left unanswered as the controversy around Worldcoin and its use of biometrics continues. As the CNPD’s president stated, the ban is seen as a necessary measure to protect citizens’ fundamental rights, especially minors, and investigations into Worldcoin’s activity in Portugal will continue.
Hopefully, these actions by data protection authorities will encourage Worldcoin to reevaluate its practices and comply with GDPR regulations to ensure the protection of users’ personal data in the future.
