Worldcoin Comes Under Germany’s Data Watchdog’s Scrutiny
Worldcoin, launched by OpenAI’s CEO Sam Altman, has come under Germany’s data watchdog scrutiny. The Bavarian State Office for Data Protection Supervision has commenced an investigation in the German subsidiary among concerns about processing biometric data.
Their controversial initiative attracted a probe in November 2022 intending to examine the sensitive biometric data processing. The EU regulators are keeping an eye over these proceedings despite Worldcoin’s claims to hold privacy and encrypt personal data. Watchdogs in France and the UK have also expressed concerns over Worldcoin’s data collection practices.
Apprehension Regarding Worldcoin’s Controversial Initiative
The biometric data processing procedure involves scanning a user’s iris to offer a digital ID and cryptocurrency. Their website states that 2.1 million worldwide signups have been received so far.
The Bavarian State Office for Data Protection Supervision’s president, Michael Will, apprehended the large-scale processing of sensitive data. Will expressed his concerns to Reuters regarding significant risks attached to the highly-sensitive biometric data.
Their exact words were, “These technologies are at first sight neither established nor well analyzed for the specific core purpose of the processing in the field of transferring financial information.”
Worldcoin’s website states that it upholds privacy and encrypts personal data while defending its stance. The global initiative is registered by the Cayman Islands, whereas the European governance is under the EU’s data protection laws.
A Strict Framework Imposed By EU Data Rules
Lately, the world’s greatest crypto exchange platform, Binance, was stopped from supporting privacy coins under the guise of adhering to the Market in Crypto Assets (MiCA) rule in the region.
Notably, the “travel rule” imposed by MiCA puts companies at risk for facilitating kinds of crypto trades in the EU legislation. That is why the authorities have initiated the scrutiny of biometric data processing to validate the legitimacy and outcomes of gathering such vast amounts of biometric information.
Controversy Expands Germany’s Borders
Germany isn’t the only country to assess Worldcoin’s biometrics. France and UK regulators have also jumped in the wagon and have expressed doubts regarding the data collection procedures of the project.
While France’s privacy watchdog, CNIL, deems Worldcoin’s legality for data collection “questionable,” Britain’s Information Commissioner’s Office claims their intention to investigate the project deeply.
The proceeding investigations will have implications for the Worldcoin project, its biometric data collection, and privacy concerns in the current age. Following the news, the WLD token trading closed at $2.30 at press time, with a recorded daily high of more than 3%.
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