Gairika Mitra
Worldcoin, an ambitious cryptocurrency project, is facing significant legal and ethical challenges. The company has attracted millions in investment but now finds itself under investigation for potential violations of GDPR (General Data Protection Regulation). This is purportedly due to its handling of biometric data and eyeball scanning.
As per DLNews, the core issue revolves around Worldcoin’s business model, which involves scanning users’ irises to create a unique digital identity called WorldID. In return, users receive WLD tokens, the project’s cryptocurrency.
However, authorities have raised concerns about how this biometric data is collected and stored. These things have also led to an investigation into potential GDPR non-compliance.
Exploitation of Vulnerable People
Adding to its woes, Worldcoin is being criticized for allegedly exploiting vulnerable individuals. The same DLNews report states that Worldcoin has taken advantage of homeless people, adding that those with substance abuse issues were even paid to get their eyes scanned.
These concerns are exemplified by reports of similar things happening in Berlin, where exploitation of vulnerable individuals is particularly pronounced. In March and April, the Chechen group conducted an estimated half of the suspicious scans in Berlin. Based on this estimate, the group could have earned approximately 95,000 WLD. When calculated using the average token price during those 61 days, their earnings might have reached around $685,000, the report said.
The report also mentioned that the value of WLD tokens has plummeted by over 85% since March.
Regulatory Challenges Mount for Worldcoin Amid Privacy Concerns
On top of all of these, the company is facing close scrutiny for allegedly breaching privacy protections and scanning the eyes of minors without obtaining parental consent. In January, Hong Kong’s data privacy authority raided six Worldcoin operators in the city and warned the public not to have their eyes scanned.
In March, Spain imposed a ban on Worldcoin, citing the highly sensitive nature of collecting biometric data and reports of the company scanning minors. Portugal’s data regulator followed suit that same month, also prohibiting Worldcoin after receiving complaints regarding the collection of minors’ biometric data without parent consent.
Simultaneously, the regional German regulator is set to release findings from a two-year investigation into whether Worldcoin complies with the European Union’s GDPR guidelines — again to focus on how it manages and stores the biometric data.
The Shib Daily has reached out to Worldcoin for comments on the ongoing circumstances. We will update the article as and when we hear from them.
Read More
- Worldcoin Pilots Facial Recognition for Enhanced Security
- Worldcoin Reinforces Privacy and Transparency with Unverify Option and Open-Sourcing Code
- Singapore Probes Shadow Market for Worldcoin Accounts
Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
