Sam Altman’s Worldcoin ordered to stop collecting data in Spain

After hitting 1 million daily users on WorldApp, Worldcoin is running into regulatory roadblocks.

The Spanish Agency for the Protection of Data (AEPD) ordered Worldcoin to stop collecting and processing data in Spain on March 6, issuing a temporary order banning operations for a period of three months. 

Worldcoin is a product/service developed by Tools for Humanity, a firm founded by OpenAI co-founder and CEO Sam Altman. Its mission, according to the Worldcoin white paper, is to create a “globally inclusive identity and financial network, owned by the majority of humanity” with the stated goal of creating “a potential path to AI-funded universal basic income.

The AEPD order claims the agency is investigating complaints that users in Spain aren’t able to withdraw consent and that Worldcoin has allegedly collected data from minors.

Per a translation via Microsoft:

“The AEPD, which demands the cessation of the collection and processing of special categories of personal data as well as the blocking of those already collected, has received several complaints denouncing, among other aspects, insufficient information, the collection of data from minors or that the withdrawal of consent is not allowed.”

Worldcoin sent Cointelegraph the following statement from Data Protection Officer Jannick Preiwisch:

“World ID was created to give people access, privacy and protection online. It is the most privacy preserving and safest solution for asserting humanness in the age of AI, and we are always willing to engage with regulators, examine their feedback and answer their questions.”

The statement from Worldcoin continues:

“For months we have been engaged with Bavarian data protection authority (BayLDA), who are the lead supervisory authority under the GDPR for Worldcoin Foundation and Tools for Humanity. The Spanish data protection authority (AEPD) is circumventing EU law with their actions today, which are limited to Spain and not the broader EU, and spreading inaccurate and misleading claims about our technology globally.”

“Our efforts to engage with the AEPD and provide them with an accurate view of Worldcoin and World ID have gone unanswered for months. We are grateful to now have the opportunity to help them better understand the important facts regarding this essential and lawful technology.”

The Spanish authorities’ injunction comes just a little over a month after Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) conducted an investigation into Worldcoin.

As Cointelegraph reported, PCPD executed search warrants on Worldcoin offices in Hong Kong in January, citing concerns over data privacy.

The controversy surrounding Worldcoin stems from its use of biometric scanning devices called “orbs.” Worldcoin users sign up for the service by downloading an app. They’re then directed to the nearest facility containing an orb, where they must submit to have their eye scanned. As human irises are unique to each individual, this method of biometric verification is generally considered more accurate than fingerprinting and other common identification techniques.

Once verified, user identities are tied to their unique biometric data, where they can be verified independently using Worldcoin’s services. Those who sign up for the service and activate their accounts in the WorldApp application are given a payment in Worldcoin’s WLD token.

Related: Worldcoin soars 140% in a week as wallet app hits 1M daily users

According to Tools for Humanity, Worldcoin has 4 million verified users as of March 5, 2024.

Update 6 March, 10:59 AM PST: Added statement from Worldcoin.