Portuguese Regulator Suspends Worldcoin's Biometric Data Collection

Portugal's data regulator has ordered Worldcoin to halt biometric data collection for 90 days due to concerns over data protection rights. The Portuguese National Data Protection Commission received complaints regarding unauthorized data collection from minors, insufficient information provided, and the inability to erase data. Worldcoin, while denying allegations of non-compliance, faces similar bans in Spain and Kenya, highlighting ongoing scrutiny over privacy and data protection practices in the development of global digital identity systems.

Portuguese Regulator Suspends Worldcoin's Biometric Data Collection

The Comissão Nacional de Proteção de Dados (CNPD), Portugal's data protection authority, has issued a 90-day suspension order against Worldcoin, prohibiting the collection of biometric data from Portuguese citizens. The order, announced on March 26, temporarily halts Worldcoin's operations in the country, pending further investigation.

Worldcoin: A Global Digital Identity Project

Worldcoin is a venture backed by high-profile investors including Andreessen Horowitz. Founded in 2019 by Tools for Humanity (TFH), it seeks to create a global digital identity system using cryptocurrency and iris scan technology. The project incentivizes participation with a digital ID and WLD tokens, its native cryptocurrency, in exchange for facial scans collected through its proprietary "orb" devices.

Concerns over Data Protection

The CNPD's decision stems from concerns raised by dozens of complaints alleging that Worldcoin has been collecting biometric data from minors without proper authorization, providing insufficient information to data subjects, and making it difficult for individuals to erase their data or withdraw consent. The regulator estimates that these practices pose a high risk to citizens' data protection rights and warrant urgent intervention.

Worldcoin's Defense

In response to the allegations, Jannick Preiwisch, Data Protection Officer at the Worldcoin Foundation, maintains that "Worldcoin is fully compliant with all laws and regulations governing the collection and transfer of biometric data." Preiwisch asserts that the Portuguese suspension is the first instance of such allegations and that Worldcoin has zero tolerance for underage sign-ups.

Prior Regulatory Setbacks

However, the Portuguese suspension is not an isolated incident. Worldcoin has previously faced regulatory challenges in other jurisdictions. In March, Spain's data protection agency imposed a similar three-month ban in response to complaints. In August 2023, Kenya, one of Worldcoin's initial launch sites, suspended the project due to security, privacy, and financial concerns.

Implications for Worldcoin's Global Ambitions

The Portuguese suspension, coupled with previous regulatory setbacks, highlights the challenges Worldcoin faces in implementing its global digital identity system. The project's data collection practices have come under scrutiny from regulators, raising concerns about the protection of citizens' privacy and the responsible use of biometric data. As Worldcoin continues to expand its operations, it will likely face continued scrutiny from data protection authorities worldwide.