Spain’s data protection regulator, the AEPD, has ordered the cessation of operations of Worldcoin, a cryptocurrency project co-founded by OpenAI’s Sam Altman, according to a report by the Financial Times.
Spain’s data protection regulator, the AEPD, has ordered the cessation of operations of Worldcoin, a cryptocurrency project co-founded by OpenAI’s Sam Altman, according to a report by the Financial Times.
The reason behind the ban is privacy concerns over the use of eye scanning technology for data collection.
Innovative project
Worldcoin is a cryptocurrency and digital ID platform co-founded by Sam Altman that aims to provide digital identities verified through iris scanning.
It is combined with a unique cryptocurrency token and wallet to distinguish real humans from online AI.
Worldcoin has attracted significant investment, raising around $250 million from notable backers including venture capital giant Andreessen Horowitz.
Last December, it announced a major update that included a cutting-edge verification system.
Last month, it saw a massive rally to hit a new record, leading a broader rally in AI-related cryptocurrencies driven by Nvidia’s strong earnings and optimistic sales forecast.
Increasing scrutiny
However, the high-profile nature of the company and its innovative data collection method have not been without controversy.
In Spain, for example, consumer complaints arose when people queued at Worldcoin stands in shopping malls, triggering a regulatory reaction.
This type of scrutiny is not limited to Spain. South Korea’s privacy regulator is investigating Worldcoin’s handling of biometric data, including facial and iris recognition, for possible violations of local data protection laws.
Similarly, regulators in the United Kingdom, Germany and France have had the innovative project in their sights.
