Worldcoin in trouble again, this time over data privacy concerns in Colombia
Date: 2024-08-23 Author: Gabriel Deangelo Categories: BUSINESS
Crypto project Worldcoin is now under scrutiny in Colombia for alleged violations of the country’s personal data protection laws, following similar allegations in several other countries.
On Wednesday, Colombia’s watchdog, 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 personal data protection laws, particularly in how it handles sensitive data.
If the regulator finds Worldcoin guilty, the company could face significant fines. These could include large fines or a suspension of its data processing activities for up to six months.
In 2019, OpenAI CEO Sam Altman co-founded Worldcoin with Max Nowendstern and Alex Blania. Their goal was to create a mechanism by which people around the world could verify their identity online, facilitating universal participation in the global economy.
At the heart of the debate around Worldcoin is the way it collects biometric information.
The project uses a device called a “ball” to scan users’ irises, creating an IrisCode without storing the iris image itself. This code is used to create a World ID on the Worldcoin blockchain, allowing users to verify their identity without revealing any private information.
Critics argue that exchanging irreplaceable biometric data for cryptocurrency carries significant privacy risks. They fear that such data could be used for surveillance or sold to third parties, although Worldcoin claims to preserve user privacy.
Worldcoin has previously faced global regulatory scrutiny over its data handling. In June, Noah Kim, the only Korean at the developer Worldcoin Tools for Humanity, said the project’s main problem was a misunderstanding of how it collects data and performs iris scans.
He explained that the orb’s only function is to verify the user’s authenticity using an iris scan. “We create an encrypted code and immediately delete the rest of the data,” he added.
Kenya recently announced that it had closed an investigation into Worldcoin that was halted there last year. The Directorate of Criminal Investigation (DCI) said the project could resume operations in Kenya once it receives the necessary permits.
