Portugal's data regulator, CNPD, has ordered Worldcoin to cease collecting biometric data in the country for 90 days, citing concerns over users' data protection rights. According to a report by Reuters, CNPD highlighted risks related to unauthorized data collection from minors and inadequate mechanisms to erase the information collected from users.

However, Worldcoin has refuted the claims, citing ongoing efforts to address the regulatory issues, including the alleged sign-up of underage users. The iris-scanning project, which offers free cryptocurrency in exchange for iris scans, has attracted over 4.5 million users globally.

Privacy Concerns

Recently, Worldcoin announced a shift toward personal custody to grant users control over their data. Amidst ongoing investigations and restrictions in other countries, Worldcoin faces regulatory challenges regarding privacy concerns in handling biometric data.

Worldcoin's ambitious goal of establishing an identity and financial network has triggered regulatory scrutiny globally. According to its Founder, Sam Altman, such a system is crucial in navigating an AI-dominated world. However, privacy advocates caution against the risks associated with biometric data collection. Worldcoin has attracted interest from major investors, such as a16z crypto and Bain Capital Crypto.

Despite assurances of compliance, Worldcoin faces regulatory hurdles in multiple jurisdictions. This includes recent actions by Kenya and Bavarian state regulators, indicating a broader trend of regulatory intervention.

Escalating Regulatory Scrutiny

In Spain, the country's Data Protection Agency recently ordered Worldcoin to halt the collection and processing of personal data over privacy concerns. This action followed complaints regarding inadequate disclosure of information, data collection from minors, and the inability to withdraw consent. The intervention aims to prevent the transfer of personal data to third parties and secure already collected data.

Last year, France and the UK questioned Worldcoin's data collection methods. The use of biometric data, such as iris scans, raised a concern. Similarly, the UK's Information Commissioner's Office emphasized the importance of obtaining users' consent and adhering to data protection laws.

In response to the growing scrutiny, Worldcoin's Co-Founder, Alex Blania, defended the project's approach to handling biometric data, highlighting the necessity of distinguishing humans from AI bots. Blania mentioned that data privacy is ensured through blockchain technology. However, skepticism persists, with concerns about the potential for data leaks and breaches of privacy remaining unresolved.