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Portugal's data regulator orders Worldcoin to halt biometric data collection, citing privacy risks. Worldcoin faces scrutiny over data practices.
Portugal's CNPD Halts Worldcoin's Biometric Data Collection Amid Privacy Concerns
Portugal's data regulator has ordered Sam Altman's iris-scanning project Worldcoin to stop collecting biometric data for 90 days, the latest regulatory setback for a venture that has raised privacy concerns in several countries, Reuters reported.
Worldcoin encourages users to scan their faces with its "orb" devices in exchange for a digital ID and free cryptocurrency. According to the Worldcoin website, over 4.5 million people have signed up from 120 countries.
Portugal's data regulator, the CNPD, stated that there was a high risk to citizens' data protection rights, necessitating immediate action to prevent serious harm. According to the CNPD, Worldcoin has collected biometric data from over 300,000 people in Portugal.
The regulator said it had received dozens of complaints in the last month about unauthorized data collection from minors, "deficiencies in the information provided to the data subjects," and "the impossibility of erasing the data or withdrawing consent."
According to Jannick Preiwisch, data protection officer at the Worldcoin Foundation, Worldcoin is "fully compliant with all laws and regulations governing the collection and transfer of biometric data."
"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, even if a matter of a few reports," Preiwisch said in an emailed statement.
Worldcoin also stated that the company began transitioning to "Personal Custody" in March, giving users control over their data, including deletion and future use. The CNPD stated that the order to stop data collection was temporary while it conducted additional due diligence and analyzed complaints during an investigation.
Privacy Concerns and Regulatory Scrutiny Surround Worldcoin's Biometric Data Collection
According to Altman, Worldcoin aims to create an "identity and financial network" that will allow people to prove their humanity in a world dominated by artificial intelligence. Altman is the CEO of OpenAI and co-founder of Worldcoin.
Worldcoin is being investigated in several countries, and privacy advocates have criticized the collection of personal data.
Big Brother Watch, a UK privacy campaign group, warned after Worldcoin's that biometric data could be hacked or exploited, and senior advocacy officer Madeleine Stone added that digital ID systems "rarely live up to the extraordinary benefits technocrats tend to attribute to them."
Following complaints, Spain's data protection regulator issued a three-month ban on Worldcoin earlier this month. Kenya suspended Worldcoin activities in August.
The Bavarian state regulator has stated that it is the primary authority investigating Worldcoin under the European Union's data protection regulations because Tools For Humanity, the company behind Worldcoin, has a German subsidiary.
The CNPD has suspended the Worldcoin Foundation, a Cayman Islands entity described on its website as "memberless" with no owners or shareholders. According to the Worldcoin Foundation's website, it is the sole member and director of World Assets Ltd, a British Virgin Islands company in charge of issuing Worldcoin tokens to those who sign up.
The CNPD stated that its decision was addressed to the Worldcoin Foundation, the data controller for the biometric data. Worldcoin is backed by some of the most well-known venture capital firms, including a16z Crypto and Bain Capital Crypto.
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