Worldcoin Halts Operations in Spain Amid Regulatory Probe

The suspension of operations prohibits the firm from conducting any activities over the next couple of months.

Robot security came to pay a visit to the worldcoin office.
Created by Kornelija Poderskytė from DailyCoin
  • Worldcoin will temporarily suspend all operations in Spain.
  • The firm’s 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 Worldcoin’s 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.

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The decision comes amid privacy concerns over Worldcoin’s operations, as part of the broader ongoing scrutiny of the firm by the data watchdog of Bavaria, Germany, Bayerische Landesamt für Datenschutzaufsicht (BayLDA).

“In 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,” 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, “Our 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.”

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.

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The report has not necessarily impacted the firm’s 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. 
  • In 2023, two Worldcoin officials,  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 firm’s 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 Investor’s $1M Hack

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Grace Abidemi

Grace Abidemi, a cryptocurrency reporter at DailyCoin, covers industry developments and trends. She previously worked as a freelance writer. With a Bachelor's degree in German Language and certifications in marketing and storytelling, Grace creates engaging content. When not working, she's in Nigeria, mastering cooking and canvas painting, and enjoys learning about different cultures and languages.