European Bans Threaten to Oust Worldcoin from Global Biometrics

Crypto biometrics venture Worldcoin faces mounting regulatory scrutiny, with Portugal joining Spain in temporarily banning operations. The Portuguese data protection authority cited concerns about children's eyeball scans, insufficient user information, and the inability to delete biometric data. Worldcoin's proprietary orbs are currently only operational in Germany within Europe, as other markets have taken action due to privacy violations. Authorities raise concerns over the inherent conflict between Worldcoin's blockchain-based approach and EU data protection law, highlighting the legal and ethical complexities surrounding the collection and retention of sensitive biometric data.

Could European Countries Derail Worldcoin's Global Biometrics Ambitions?

Worldcoin, the controversial venture aiming to establish a "humanness layer" through biometric data collection, has faced a significant setback in Europe. Following a three-month ban in Spain earlier this month, Portugal's data protection authority has now imposed a similar order, effectively booting Worldcoin out of almost all of Europe.

What Triggered the Ban?

Portugal's ban stems from concerns over Worldcoin's alleged practice of scanning children's eyeballs, as well as insufficient information being provided to users about the processing of their biometric data. The company's use of blockchain technology, which permanently stores scanned biometrics, also conflicts with EU data protection laws that grant individuals the right to have their personal data corrected or deleted.

Who's Next?

With the ban in Portugal, Germany remains the sole European country where Worldcoin can continue its biometric harvest. However, Germany's data protection authority, which has been investigating Worldcoin since last year, has yet to take any public action. The pressure on Germany to intervene is mounting as privacy watchdogs in Southern Europe demonstrate a willingness to protect their citizens.

Worldcoin's Defense

In response to the ban, Worldcoin claims to be "fully compliant with all laws and regulations governing the collection and transfer of biometric data, including Europe's General Data Protection Regulation." The company emphasized its transparency and willingness to address any concerns raised by data protection authorities.

Bavarian Authority Under Scrutiny

As Worldcoin's lead data protection authority under the EU's General Data Protection Regulation (GDPR), the Bavarian DPA has a significant responsibility in overseeing the company's compliance. Despite ongoing complaints and the recent bans in Spain and Portugal, the Bavarian authority has not yet taken any public action.

GDPR's Enforcement Mechanism

Under the GDPR's "one-stop-shop" mechanism, the Bavarian DPA is responsible for investigating privacy and data protection complaints about Worldcoin. However, other EU authorities can object to its findings, providing a safeguard against potential forum shopping risks.

Urgent Risk Powers

The GDPR's Article 66 powers, invoked by both Spain and Portugal in their bans on Worldcoin, allow authorities to respond to urgent risks even when the lead authority has not acted. The fact that Spain and Portugal have taken urgent action suggests dissatisfaction with the Bavarian authority's pace of investigation.

Conclusion

Worldcoin's biometrics venture faces an uncertain future in Europe. The bans in Spain and Portugal, coupled with the ongoing investigation by the Bavarian authority, could derail the company's global ambitions. As privacy concerns continue to escalate, it remains to be seen whether Worldcoin can overcome these regulatory hurdles and establish a comprehensive "humanness layer" in the face of determined opposition from European data protection authorities.