- Worldcoin will temporarily suspend all operations in Spain.
- The firmโs project has come under scrutiny by Spanish regulatory watchdogs.
- Worldcoin has recently exited one of its key markets due to compounding regulatory troubles.
Over the past months, Worldcoin has come under scrutiny for its controversial method of operation, drawing regulatory ire for its collection and usage of user data.
At the latest, the firm has come under investigation by Spanish authorities.
Worldcoin Exits Spain, Temporarily
On Tuesday, June 4, 2024, the Spanish Agency for Data Protection (AEPD) ordered the suspension of Worldcoinโs operation in the region. The restriction will temporarily prohibit the firm from conducting operations over the upcoming months, allowing authorities to investigate its handling of user data.
Sponsored
The decision comes amid privacy concerns over Worldcoinโs operations, as part of the broader ongoing scrutiny of the firm by the data watchdog of Bavaria, Germany, Bayerische Landesamt fรผr Datenschutzaufsicht (BayLDA).
โIn this context, the company has made a legally binding commitment not to resume its activity in Spain until the end of the year or until the BayLDA adopts a definitive resolution in relation to the data processing carried out by the company,โ the announcement read.
Commenting on the firm’s willingness and quick cooperation with Spanish authorities, Thomas Scott, Chief Legal Officer for Tools for Humanity said, โOur commitment demonstrates just how fully committed Tools for Humanity and all Worldcoin project contributors are to explaining the project to AEPD and to allowing BayLDA the opportunity to thoroughly review the project and its technology.โ
Prior to its suspension in Spain, Worldcoin was recently driven out of Hong Kong for regulatory violations. Following a months-long investigation, authorities revealed it violated the Privacy Ordinance by failing to clarify whether it was obligatory or voluntary for customers to provide their personal information.
The report has not necessarily impacted the firmโs native token, which has maintained stable momentum, trading at $4.77 at press time.
On the Flipside
- Despite the wave of scrutiny, World App recently celebrated amassing 10 million users.ย
- In 2023, two Worldcoin officials, ย Alex Blania and Thomas Scott, faced detention in Kenya.
- Worldcoin is expected to increase the supply of its native token by 19% within the next six months.
Why This Matters
The regulatory troubles in Spain for Worldcoin compound its already shaky regulatory reputation, and the lengthy suspension of activities could significantly impact the firmโs operations.
Read more about recent actions aimed at maintaining user data security:
Worldcoin Open Sources Security System to Keep User Data Safe
Discover more about this blame tussle between Binance and a user:
Binance Denies Responsibility for Chinese Investorโs $1M Hack
