Spain Temporarily Halts Worldcoin's Operations Over Privacy Concerns
In a significant development, Spain has imposed a temporary ban on Worldcoin's activities within its jurisdiction. The Spanish Data Protection Agency (AEPD) has issued a directive to Worldcoin, demanding an immediate halt to the collection of personal information and the use of data previously gathered on Spanish soil, as reported by Reuters.
The imposed restrictions are set to last for three months. The AEPD's decision is rooted in complaints about insufficient disclosure of information regarding the service, the collection of data from minors, and the inability to retract consent for data provision.
The AEPD highlights that the processing of biometric data falls under the protection of the GDPR, associating it with "high risks to human rights." The regulator's urgent measures are justified by the aim to "avoid potential harm."
Following the announcement, the value of Worldcoin's token (WLD) dropped to $6.4 but later recovered. At the time of writing, the token is trading at $7.1, experiencing a 1.1% loss over the past day, according to CoinGecko.
Worldcoin's flagship product, the World ID protocol, is based on zero-knowledge proofs. It serves as a tool that enables individuals to undergo identification using biometric data or a phone number. Previously, Worldcoin deactivated the biometric verification feature using orbs for users in India, Brazil, and France.
In early February, the Office of the Privacy Commissioner for Personal Data in Hong Kong expressed suspicions regarding the project's potential violation of information storage provisions.
It's worth noting that in December 2023, Worldcoin introduced World ID 2.0, which has been integrated with several platforms, including Telegram, Reddit, Shopify, and Minecraft, to facilitate passwordless authorization. This move underscores the project's ongoing efforts to expand its reach and utility, despite facing regulatory challenges in multiple jurisdictions.
