Cryptocurrency project Worldcoin is currently under the magnifying glass in Colombia for alleged violations of data protection laws, following similar accusations in several other countries.
On Wednesday, the Colombian regulator, the Superintendence of Industry and Commerce (SIC), announced that it had filed charges against the project. The goal is to investigate whether it has violated data protection laws, particularly in the way it processes sensitive data.
If the regulator finds Worldcoin guilty, the company could face significant penalties. These could include hefty fines or the suspension of data processing activities for up to six months.
Worldcoin under fire for potential privacy risks in biometric identification project
In 2019, OpenAI CEO Sam Altman co-founded Worldcoin with Max Novendstern and Alex Blania. Their goal was to create a mechanism where people around the world could verify their identities online, facilitating widespread participation in the global economy.
At the heart of the debate surrounding Worldcoin is how to collect biometric information. The project uses a device called an “orb” to scan users’ irises, creating an IrisCode, but not retaining the iris image itself. This code is used to create a World ID on the Worldcoin blockchain, allowing users to confirm their human identity without revealing personal information.
Critics say exchanging irreplaceable biometric data for cryptocurrency poses significant privacy risks. They fear that such data could be used for surveillance or transferred to third parties, despite Worldcoin’s claims to protect users’ privacy.
Iris scanning technology faces global backlash over data privacy
Worldcoin has previously faced global regulatory scrutiny over its data processing. In June, Noah Kim, the only Korean member of the Worldcoin Tools for Humanity developer staff, said that the main challenge for the project is misunderstandings about how data is collected and iris scans are performed.
He explained that the only function of the sphere is to verify a user’s authenticity through iris scans. “We create an encrypted code and immediately delete the rest of the data,” he added.
Kenya recently announced that it has completed its investigation into Worldcoin, which was halted there last year. The Directorate of Criminal Investigations (DCI) said theproject could resume operations in Kenya after obtainingthe required permits.
