Worldcoin Faces Investigation by French Regulator Over Data Privacy Concerns

Key Insights

• French data protection regulator CNI investigating Worldcoin (WLD) for “questionable” data practices.
• UK’s Information Commissioner’s Office raises privacy concerns about Worldcoin’s data processing.
• Worldcoin Foundation commits to cooperating with regulators and ensuring compliance. 

Worldcoin (WLD), the crypto venture spearheaded by Sam Altman from OpenAI, is currently under investigation by the French data protection regulator, CNI, due to concerns surrounding its practices.

Worldcoin’s Data Collection and Retina Scanning Under Investigation

In particular, CNI has raised questions about the legality of the data collection and the preservation of biometric data used by Worldcoin (WLD), the cryptocurrency associated with the project.

Worldcoin employs retina scans to prevent individuals from claiming crypto rewards multiple times.

A spokesperson from CNIL expressed their reservations in a written statement, stating,

The legality of this [data] collection seems questionable, as do the conditions for preservation of biometric data.

The investigation is being conducted in collaboration with Bavarian privacy regulators, who hold primary responsibility under EU law.

Worldcoin’s launch on Monday has generated enthusiasm among its supporters, who believe it has the potential to broaden the adoption of cryptocurrencies beyond the scope of Bitcoin (BTC).

However, it has also attracted the attention of privacy watchdogs in the United Kingdom. The Information Commissioner’s Office in the UK has cautioned that individuals must provide their consent freely for the processing of their personal data and be able to withdraw it without facing any adverse consequences.

Read also: Vitalik Buterin Lists the Risks of Worldcoin (WLD)

Worldcoin Promises Regulatory Compliance

In response to the investigation, the Worldcoin Foundation stated,

The project will continue to cooperate with governing bodies on requests for more information about its privacy and data protection practices. We are committed to working with our partners across Europe to ensure that the Worldcoin project meets regulatory requirements and provides a safe, secure, and transparent service for verified humans.

Despite the ongoing probe, Worldcoin maintains that it complies with the EU’s General Data Protection Regulation (GDPR) concerning the collection and transfer of biometric data. The project is also actively monitoring local regulations to ensure full compliance.

At the time of reporting, WLD tokens experienced a 1.5% increase in trading value over the past 24 hours, reaching $2.19.

Further details on the nature of the investigation have not been provided by the Bavarian data protection regulator, who has yet to respond to inquiries from MarketsXplora. Reuters was the first to report on the investigation.