Worldcoin Halts Operations in Spain Amid Intensifying European Data Protection Investigations

• Worldcoin, developed by Tools for Humanity Corporation, has decided to halt its operations in Spain until at least the end of 2024.
• This move stems from an ongoing investigation by the Spanish Agency for Data Protection (AEPD) into the company’s data collection and processing methods.
• Similar investigations are taking place in other countries, including Germany and Hong Kong, as authorities scrutinize Worldcoin’s use of biometric data.

Worldcoin suspends Spanish operations amidst data protection scrutiny, with broader implications for its future in Europe and beyond.

European Investigations Intensify

The Bayerische Landesamt für Datenschutzaufsicht (BayLDA) in Bavaria, Germany, is currently heading the investigation. Their conclusions are expected soon and will likely set precedents for compliance across multiple European data protection authorities.

The final outcomes from BayLDA will significantly impact Worldcoin’s operational framework in Europe, particularly focusing on the handling and protection of sensitive biometric data.

Earlier this year, the AEPD had ordered Worldcoin to temporarily halt its data activities by March 2024, emphasizing the necessity of compliant data practices under the General Data Protection Regulation (GDPR). Spain’s National Court upheld this decision, reinforcing the importance of safeguarding personal data over business interests.

Worldcoin Adapts Technology and Operations

In light of these regulatory hurdles, Worldcoin has implemented several key adjustments to its data management practices. The company has made its biometric data system open-source and introduced secure multi-party computation (SMPC) technology to bolster data security.

SMPC technology disperses encrypted segments of data across various parties, ensuring no single entity can access the entire dataset. This approach aims to reduce the risk of data breaches and enhance the overall security of biometric information.

Worldcoin Foundation, alongside experts from TACEO and Tools for Humanity, has worked on refining this SMPC technology to address issues of scalability and cost-effectiveness, crucial as demand for biometric data processing increases globally.

Moreover, Worldcoin has enhanced its user interface, enabling users to securely delete outdated iris codes and introduced stricter age verification controls. These steps also include giving users the option to opt-out of the iris scan, aligning with privacy concerns.

Following the announcement of the operational halt in Spain, Worldcoin saw a slight dip from its 24-hour high of $4.89, settling at $4.76. This indicates a modest increase of 0.7% over the past day, suggesting limited immediate market impact.

Conclusion

Worldcoin’s temporary suspension in Spain reflects broader regulatory challenges the company faces across Europe. By proactively adapting its technology and operational practices, Worldcoin aims to comply with stringent data protection laws and establish a secure, scalable model for handling biometric data. The outcomes of ongoing investigations will be crucial in determining its future trajectory in the global market.