Spanish Regulator Restricts Worldcoin Operations Until End of 2024
Date: 2024-06-05 Author: Gabriel Deangelo Categories: BUSINESS
On June 4, 2024, the Spanish Data Protection Agency (AEPD) announced the cessation of Worldcoin's activities in the country. Tools for Humanity, the company behind the project, must immediately stop collecting and processing Spanish user data until the end of 2024 or until the investigation is completed.
Reasons for Restrictions
According to an AEPD press release, the decision to suspend services was taken as part of an ongoing investigation initiated by the Bavarian data protection regulator (BayLDA). The main subject of the investigation concerns Worldcoin's methods of collecting and processing personal information. In its statement, the Spanish regulator emphasized that the final decision will be made upon completion of the investigation:
“The company has made a legal commitment not to resume its activities in Spain until the end of the year or the BayLDA regulation,” AEPD officials said.
It is worth noting that this is not the first time that Worldcoin's activities have been limited. Earlier in March 2024, Spain had already blocked the project for 90 days. Similar measures were taken in Portugal, Hong Kong and several other countries around the world.
Worldcoin Response Measures
In response to pressure from regulators, Worldcoin developers have strengthened security measures and open sourced the project to increase transparency of their activities. The team declared their business completely legal and continued to grow their client base, despite the restrictions.
Despite the legal problems, Worldcoin continues to show significant growth. In April 2024, the number of project users reached 10 million. In addition, the number of transactions during this period reached a record 70 million, indicating a high level of activity and interest in the platform.
Launch of L2 Network based on Ethereum
In April 2024, the Worldcoin team also announced plans to launch a Layer 2 (L2) solution on Ethereum. The launch of the L2 network is expected to take place in the summer of 2024, which should significantly increase the scalability and efficiency of the platform.
The restrictions imposed by the Spanish regulator on the activities of Worldcoin highlight the importance of compliance with data protection standards in modern digital projects. At the same time, the continued growth of the client base and the development of new technological solutions indicate the viability and relevance of the project at the global level. Worldcoin will have to adapt to new requirements and conditions in order to continue its activities and strengthen its position in the market.
