Portuguese Regulator Halts Worldcoin's Biometric Data Collection Amidst Investigation

The Portuguese data regulator, CNPD, has temporarily banned Worldcoin's collection of biometric data in the country following concerns about the processing of minors' data without proper authorization. The measure takes effect immediately and will remain in place until an ongoing investigation into the matter is concluded.

Portuguese Data Regulator Suspends Worldcoin Biometric Data Collection

Lisbon, Portugal - The Portuguese National Data Protection Commission (CNPD) has issued a statement announcing its decision to temporarily halt Worldcoin's collection of biometric data within the country. This move comes in the wake of concerns raised about the company's practices, particularly regarding the collection of data from minors without proper authorization.

According to the CNPD, the suspension will remain in effect until the conclusion of an investigation that was initiated on March 8th. The investigation was prompted by "dozens of reports" received by the CNPD alleging that Worldcoin had collected biometric data from minors without the necessary parental or legal consent.

"Given the current circumstances, in which there is illegality in the processing of minors' biometric data, associated with potential violations of other GDPR standards, the CNPD understood that the risk to citizens' fundamental rights is high, justifying urgent intervention to prevent serious or irreparable damage," the CNPD stated.

Worldcoin, a company founded by Sam Altman, CEO and co-founder of the artificial intelligence developer OpenAI, operates by capturing iris scans of individuals using its Orb devices. These scans are used to generate a digital ID and the company's own cryptocurrency.

According to Worldcoin, over 4.5 million individuals in 120 countries have signed up for its service, with Portugal reporting approximately 300,000 participants who have provided their biometric data.

The CNPD's decision adds to a growing list of regulatory challenges faced by Worldcoin. The Kenyan government has maintained a ban on the project, despite reported pressure from the United States to reconsider. Legal authorities in Spain have also ordered Worldcoin to cease operations in the country due to complaints about users' inability to withdraw their consent and allegations of data collection from minors.

Despite these setbacks, Worldcoin maintains that it operates "lawfully in all of the locations in which it is available" and that its practices are compliant with applicable laws. On March 22nd, the company announced that it would be open-sourcing its software and providing a new "personal custody" privacy feature to enhance user control over their data.

The CNPD's suspension of Worldcoin's data collection in Portugal serves as a reminder of the importance of data privacy and the need for organizations to adhere to established regulations, particularly when handling sensitive personal information. The investigation into Worldcoin's practices is expected to shed light on the extent of the alleged violations and determine appropriate next steps.