Worldcoin Faces New Ban in Portugal Over Privacy Concerns
The AI startup was banned in Spain and faces further scrutiny in Germany, UK and France
March 27, 2024 06:36 AM
Reading time: 1 minute, 36 seconds
TL;DR Worldcoin, known for its iris-scanning technology aimed at proving human identity in the AI era, faces a temporary ban in Portugal amid privacy concerns. This follows similar actions in Spain and ongoing investigations in other European countries. The startup's collection of biometric data without consent, particularly from minors, has stirred controversy.
Worldcoin, the ambitious startup leveraging iris-scanning technology to authenticate human identity amidst the growing prevalence of artificial intelligence, has encountered significant regulatory roadblocks.
Most recently, Portugal has temporarily halted the Worldcoin Foundation's biometric data collection activities, following allegations of unauthorized data collection from minors.
This decision by Portugal's data regulator, the CNPD, stems from dozens of complaints related to the collection of minors' data without parental consent and challenges surrounding data deletion or consent revocation.
Regulatory Challenges in Europe In response to the CNPD's action, Worldcoin expressed surprise, claiming it was unaware of the complaints and the underage sign-ups in Portugal. This incident is not isolated; earlier this month, Spain imposed a similar ban on Worldcoin, citing privacy concerns.
Moreover, authorities in Germany, the UK, and France are scrutinizing the company's operations. These developments highlight the growing tension between innovative technology deployments and privacy regulations in Europe.
"The report from CNPD is the first time we are hearing from them regarding many of these matters, including reports of underage sign-ups in Portugal," said Jannick Preiwisch, the Worldcoin Foundation's data protection officer.
Backed by notable figures like OpenAI founder Sam Altman, Worldcoin aims to create a 'World ID'—a digital passport serving as proof of humanity in a future dominated by AI.
This initiative has drawn significant attention, with over 4.5 million people across 120 countries having their irises scanned. Despite its popularity, especially in developing countries where its Ethereum-based WLD tokens offer a financial incentive, the project faces growing scrutiny over its data collection practices.
Addressing the Criticism In light of the criticism, Worldcoin has taken steps to increase transparency and user control over their data. The company recently made its orb software open source and introduced a 'personal custody' feature, allowing users to retain encrypted, orb-generated data on their personal devices.
Despite these efforts, the balance between technological innovation and privacy rights remains a contentious issue in Europe and beyond.
