Worldcoin Expansion Halted in Portugal Amid Regulatory Concerns

The National Commission for Data Protection (CNPD) has ordered the Worldcoin Foundation to halt biometric data collection in Portugal for 90 days due to concerns about data privacy and the potential risks associated with processing biometric data, especially from minors. The decision follows a similar ban in Spain by the AEPD, and adds to regulatory challenges faced by Worldcoin in multiple countries.

Worldcoin's Expansion Stalled in Portugal Amid Regulatory Scrutiny

Lisbon, Portugal - The National Commission for Data Protection (CNPD), Portugal's data protection authority, has dealt a significant blow to Worldcoin, a blockchain-based digital identity project. The CNPD has ordered Worldcoin to halt the collection of biometric data through its "Orb" device for a period of 90 days, citing concerns about the privacy and security of user information.

This latest regulatory setback comes on the heels of similar actions taken by data protection authorities in Spain, where Worldcoin was ordered to suspend its data collection activities for three months. The investigations and bans in both countries underscore the growing global scrutiny that the project faces over its handling of sensitive personal data.

Data Protection Concerns Prompt Crackdown

The CNPD's decision stems from a thorough investigation into Worldcoin's data collection practices, prompted by numerous complaints from citizens alleging the collection of biometric data from minors without parental consent. The agency expressed grave concerns about the lack of transparency surrounding the use of the collected data, the inability of users to delete their information, and the potential risks associated with the processing of biometric data, particularly from vulnerable populations.

Minors' Data at Risk

Of particular concern to the CNPD are the risks associated with iris scanning, the method used by Worldcoin to identify users. Data scientists have raised alarms that iris scanning poses greater privacy risks than traditional biometric methods like fingerprint collection, due to the sensitive nature of the data it captures. The agency emphasized that minors are especially vulnerable to these risks.

Worldcoin's Expansion Plans Hindered

The suspension of data collection in Portugal and Spain has dealt a significant blow to Worldcoin's global expansion plans. The project has been met with suspicion and resistance in numerous countries, including Kenya, India, Brazil, France, Germany, England, Hong Kong, and now Portugal.

These regulatory challenges highlight the growing awareness among governments and data protection authorities of the potential privacy risks associated with the collection and processing of biometric data.

Worldcoin Introduces New Data Control Feature

In a bid to address mounting regulatory concerns and appease users, Worldcoin recently unveiled a new feature called "Personal Custody." This feature is designed to give World ID users greater control over their biometric data, including storage and encryption.

Worldcoin claims that "Personal Custody" empowers users to decide how their data is processed and provides them with the option to delete it at any time. The project hopes that this new feature will alleviate user concerns and rebuild trust, enabling further growth and expansion.

Token Price Fluctuates Amid Regulatory Turmoil

The regulatory scrutiny surrounding Worldcoin has had a noticeable impact on the price of its native token, WLD. The token has experienced significant volatility in recent months, dropping by 5% following news of Elon Musk's lawsuit against OpenAI and its CEO. At the time of writing, WLD is trading at approximately $8.7, a 1.7% decrease over the past 24 hours.

Conclusion

The suspension of Worldcoin's data collection activities in Portugal and Spain serves as a stark reminder of the increasing regulatory scrutiny that blockchain projects face globally. Governments and data protection authorities are becoming increasingly vigilant in protecting citizens' privacy and ensuring that companies comply with established data protection laws.

Worldcoin's future remains uncertain as it faces ongoing investigations and potential bans in multiple jurisdictions. The project's ability to navigate these regulatory challenges and regain the trust of users and authorities will be crucial to its long-term success.