Blockchain News

French Authorities Launch Probe into Worldcoin Over Data Collection Practices

Worldcoin Faces Scrutiny as Privacy Watchdog Raises Legal Questions

French privacy regulator CNIL has launched an investigation into Worldcoin, expressing concerns over the legality of its data collection and storage practices. The regulator works closely with its German counterpart, which oversees the project as its primary European regulator. The CNIL highlighted the questionable legality of data collection and the conditions for storing biometric data, prompting similar investigations in the UK for the same reasons.

Worldcoin Foundation’s Response

In response to the investigation, the Worldcoin Foundation assured CryptoSlate that it complies with all data processing laws and regulations in Worldcoin’s markets, including the General Data Protection Regulation (GDPR). The Bavarian State Office for Data Protection Supervision in Europe supervises the foundation and is committed to cooperating with regulators worldwide to maintain full compliance.

Worldcoin’s Ambitious Token Launch

Worldcoin recently introduced its token and “Orbs,” devices designed to scan individuals’ eyes to collect biometric iris data from willing participants. Under eye scanning, users receive a unique Worldcoin ID and 25 Worldcoin tokens. Notably, the project claims to be onboarding approximately eight users per second through the orbs as of July 27.

The initiative commenced with the launch of 1500 orbs in various major cities across the UK, France, and Germany. However, due to regulatory uncertainties, the orbs and the coin are yet to be launched in the United States. The Worldcoin Foundation plans to focus on expanding in jurisdictions that embrace the cryptocurrency industry more openly.

Growing Popularity Despite Concerns

Worldcoin has gained momentum throughout the second quarter despite the project’s privacy and data concerns. Its coin launch received positive feedback from the crypto community. Since the launch, network activity has surged, with a record-breaking 944,668 transactions in a single day on July 27, according to Etherscan data.

Global Expansion in the Works

The ongoing regulatory scrutiny has yet to deter Worldcoin’s global ambitions. With the project gaining traction and attracting interest from users worldwide, the Worldcoin Foundation remains committed to working with regulators to ensure compliance while expanding its presence to cryptocurrency-friendly jurisdictions.

As Worldcoin continues to navigate the evolving regulatory landscape and address data privacy concerns, its unique approach to biometric iris data collection has sparked both interest and apprehension. The project’s mission to foster widespread adoption and its impressive transaction activity demonstrate the potential for further growth in the cryptocurrency market. However, the outcome of the ongoing investigations and adherence to data protection regulations will play a pivotal role in shaping Worldcoin’s future trajectory.


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