- The cryptocurrency Worldcoin has hit a major roadblock in Spain.
- Despite regulatory challenges, the number of Worldcoin users has increased significantly, yet its price remains stagnant.
- Worldcoin is currently embroiled in a legal tussle, complicating its operations in Europe.
Worldcoin confronts regulatory challenges in Spain while witnessing user growth but struggling with price stability.
EU’s Regulatory Scrutiny on Worldcoin Intensifies
Spain’s data protection authority, AEPD, has put a temporary halt to Worldcoin’s activities, pending the outcome of an ongoing EU privacy review. The regulatory probe comes amidst concerns regarding the handling of personal data collected by Worldcoin’s parent company, Tools for Humanity.
This week, the AEPD reached a legal agreement with Tools for Humanity, mandating that the firm cease its operations in Spain until the year’s end or until a conclusive decision is made by the Bavarian Data Protection Authority (BayLDA).
“The company has now made a legally binding commitment not to resume its activity in Spain until the end of the year or, if applicable, until the BayLDA adopts a final resolution in relation to the data processing carried out by the company.”
Privacy Concerns and Compliance Measures
Initially, the AEPD flagged issues related to Worldcoin’s indiscriminate data collection practices, including enrolling minors and failing to provide an option for data removal. In response, Tools for Humanity Corporation implemented several measures including age verification and the ability to delete iris code data.
“Tools for Humanity Corporation announced changes to its operation, such as the introduction of controls to verify age or the possibility of eliminating the iris code.”
Despite these modifications, the suspension of operations in Spain will persist until the BayLDA delivers its final report. This report is anticipated to have a significant influence on Worldcoin’s future not only in Spain but across Europe.
Interestingly, Worldcoin reported a survey indicating that a substantial portion of Spanish citizens—about 90%—wish for the project to resume its operations.
“The survey results also showed that respondents in Spain strongly support the return of Worldcoin operations in the country (87% support, with 9% unsure).”
Surge in User Base Amid Pricing Stagnation
Worldcoin has experienced substantial growth in its user base, with addresses soaring from 2 million in early March to 3.79 million at the time of writing. However, this growth has not translated into price performance, as the token has struggled to break the $5 mark since mid-May.
The daily Relative Strength Index (RSI) has remained below the average level, suggesting that buying pressure is insufficient to drive the price upward.
Conclusion
The suspension of Worldcoin operations in Spain marks a critical juncture for the cryptocurrency project. While its user base continues to expand, the token’s price languishes amid regulatory scrutiny. The forthcoming report from Bavaria’s BayLDA could prove pivotal for Worldcoin’s operations in Europe, either paving the way for its resumption or raising further obstacles. Investors and users alike are keenly awaiting the resolution, understanding that it will have significant implications for the project’s future.
