- Worldcoin is once again facing regulatory scrutiny.
- Authorities in Colombia have set sights on Worldcoin’s operations.
- The firm has faced probes from global authorities in the past.
The past few months have been marked by regulatory troubles for Worldcoin, the controversial biometric crypto project co-founded by OpenAI’s Sam Altman. The firm has come under the scrutiny of various global authorities, who assert that its operations violate privacy laws.
While the firm continues to navigate its woes across various regions, another authority is now investigating it.
Worldcoin’s Crisis in Colombia
The Worldcoin Foundation and Tools for Humanity Corporation are again thrust into the regulatory spotlight, this time by Colombia’s Superintendence of Industry and Commerce (SIC). According to a recently issued statement, the SIC is investigating the company for alleged violations of personal data protection laws.
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The probe comes only three months after Worldcoin’s entry into the county earlier in May 2024, extending its orb verification availability to cities including Bogotá and Medellín.
Colombia’s SIC emphasized that the investigation aims to determine whether the parties have breached the country’s personal data protection regime by collecting sensitive data.
If found guilty, Worldcoin may be subject to severe penalties, including institutional fines and a permanent end of operations in the region.
This isn’t the first time Worldcoin has faced allegations of privacy violations.
Worldcoin and Data Privacy Concerns
Since its official rollout in July 2023, Worldcoin has sparked global controversy due to its method of operation. In September 2023, only a few months after launch, the Kenyan parliamentary ad hoc committee summoned the firm’s founders, questioning its operations as an unregistered entity in the country.
In the same month, Kenya’s Health Secretary, Susan Nakhumicha Wafula, also alleged that the company’s iris scanning technology potentially exposed hundreds of thousands of Kenyans to health risks, further complicating its regional woes.
Not long after, Worldcoin was sanctioned in Hong Kong over its “unnecessary and excessive” collection of citizens’ data, leading to a full suspension of its operations.
Most recently, in June 2024, Spanish authorities temporarily suspended Worldcoin’s operations following concerns about its World ID initiative. The enforcement action followed an earlier operational block as a “precautionary measure,” citing risks to Spanish citizens such as identity fraud, privacy breaches, and potential discrimination.
On the Flipside
- Worldcoin recently gained regulatory approval for operations in Malaysia.
- The firm claims its protocol is open source, decentralized, and permissionless.
- Besides Colombia, Kenya, Hong Kong, and Spain, Worldcoin has also faced probes in Argentina and France.
Why This Matters
The ongoing investigation by Colombia’s SIC adds another layer of complexity to Worldcoin’s already strained regulatory reputation, and its future in the region now hinges on its ability to address the regulatory concerns effectively.
Read this article for Worldcoin’s recent expansion into new regions despite its compounding woes:
Worldcoin Enters Malaysia with the Government’s Blessing
Ethereum ETFs have recorded their longest outflow streak yet; read this article to find out more:
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