Worldcoin Privacy Scandal: Portugal Halts Iris-Scanning Amid Regulatory Scrutiny

Portuguese data regulator CNPD has ordered Worldcoin to suspend biometric data collection for 90 days due to concerns about citizen data protection. Over 300,000 Portuguese citizens have provided their biometric data to Worldcoin, which encourages face scans in exchange for a digital ID and cryptocurrency. The company claims compliance with data collection laws, but the CNPD cited complaints about data collection from minors, lack of proper information provision, and inability to erase data or withdraw consent.

Worldcoin: Privacy Concerns and Regulatory Scrutiny

What's the scoop on Worldcoin's biometric data collection?

Portugal's data watchdog, the CNPD, has hit pause on Worldcoin's iris-scanning project for 90 days. This latest regulatory setback comes amid escalating privacy worries surrounding the venture. Worldcoin is offering folks a digital ID and free crypto in exchange for a scan of their peepers through their orb-shaped devices. Over 4.5 million individuals in 120 countries have hopped on board, according to Worldcoin's website.

Why the CNPD's panties in a bunch?

The CNPD is buzzing about a high risk to citizens' data protection rights, necessitating urgent intervention to avert any major snafus. Over 300,000 Portuguese folks have shared their biometric data with Worldcoin, the CNPD reports. The regulator has been swamped with complaints over the past month regarding unauthorized data collection from minors, vague information provided to data subjects, and the inability to delete data or revoke consent.

Worldcoin's defense: We're squeaky clean

Jannick Preiwisch, Worldcoin Foundation's data protection officer, maintains that Worldcoin is "fully compliant with all laws and regulations governing the collection and transfer of biometric data." He adds, "The report from CNPD is the first time we are hearing from them regarding many of these matters, including reports of underage sign-ups in Portugal, for which we have zero tolerance for and are working to address in all instances."

Worldcoin: Shifting gears towards personal control

Worldcoin also announced in March that it had begun a transition to "Personal Custody," which would hand users the keys to their data, including the ability to delete it or future use.

CNPD: Hold your horses, Worldcoin

The CNPD's cease-and-desist order is temporary while it conducts more due diligence and probes complaints during an ongoing investigation.

Privacy concerns: Are we on the slippery slope?

Worldcoin envisions itself as the lynchpin of an "identity and financial network," with Altman arguing that it will empower people to prove they're not bots in an AI-dominated world. Altman is the head honcho at OpenAI and co-founded the company behind Worldcoin.

Regulatory heat on Worldcoin intensifies

Worldcoin has drawn flak from privacy advocates over its personal data collection practices and is under the microscope in various countries. UK privacy watchdog Big Brother Watch raised concerns about the potential for biometric data to be hacked or abused, with senior advocacy officer Madeleine Stone noting that digital ID systems "rarely live up to the extraordinary benefits technocrats tend to attribute to them."

Spain follows suit, Kenya suspends Worldcoin

Spain's data protection authority slapped Worldcoin with a three-month ban earlier this month in response to complaints. Kenya pulled the plug on Worldcoin's activities in August.

Bavaria takes the lead in EU probe

The Bavarian state regulator is spearheading the investigation into Worldcoin under the European Union's data protection regulations, as Tools For Humanity, the company behind Worldcoin, has a German subsidiary there.

Who's the data controller? CNPD points the finger

The CNPD's suspension notice is directed at the Worldcoin Foundation, a Cayman Islands entity described on its website as "memberless," meaning it has no owners or shareholders. However, the Worldcoin Foundation's website states that it is the sole member and director of a British Virgin Islands company called World Assets Ltd, which issues Worldcoin tokens to sign-ups. The CNPD believes the Worldcoin Foundation should be held accountable because it's the data controller for the biometric data.

Worldcoin's backers: A who's who of VC heavyweights

Despite the regulatory headwinds, Worldcoin has attracted big bucks from some of the biggest names in venture capital, including a16z crypto and Bain Capital Crypto.

Stay tuned for more twists and turns

As the drama unfolds, keep your eyes peeled for updates on Portugal's investigation into Worldcoin's data collection practices and the broader implications for privacy in the digital realm.