Spanish privacy watchdog imposes temporary ban on Sam Altman’s Worldcoin

Spain’s data protection authority has banned Sam Altman’s Worldcoin for up to three months, citing privacy concerns with the scheme that scans eyeballs to make digital IDs in exchange for cryptocurrency, prompting a fierce reaction from the company.

Spain has imposed a temporary ban on Sam Altman’s Worldcoin, a project that scans individuals’ irises in exchange for a digital ID and free cryptocurrency, due to privacy considerations.
The Spanish data protection regulator, the Agencia Española de Protección de Datos (AEPD), has ordered Worldcoin to stop collecting personal information and to cease using data it has already gathered for up to three months.

This decision was made in light of several complaints, including cases related to the collection of data from minors and individuals’ inability to withdraw their consent. In response to the decision, Worldcoin has slammed the AEPD for ‘circumventing EU law’ and ‘spreading inaccurate and misleading claims about our technology.’

Tools for Humanity, the company behind Worldcoin, has temporarily paused its services in Spain and also filed a lawsuit against the ban. Worldcoin’s Data Protection Officer, Jannick Preiwisch, confirmed the company’s intention to engage with the AEPD and explain the technology’s lawful, basic model.

Why does it matter?

Led by Sam Altman, OpenAI’s CEO, Worldcoin aims to provide a unique form of identification, by creating a “World ID” through iris scans that cannot be stolen or duplicated. It claims it can achieve this by scanning someone’s eyeballs using “orbs,” a gadget that takes an image of their iris, the colored regions of their eyes.

Despite the purpose of offering secure identification, the initiative has faced complaints and scrutiny over the collection, storage, and use of personal data. Over 4 million people in 120 countries have already participated in the project, with privacy campaigners from various countries raising multiple concerns. In Spain, over 360,000 people had joined up for Worldcoin as of November, according to the company’s recent data.

The AEPD’s action demonstrates the European Union’s strict data protection policy, notably in relation to biometric data under the EU General Data Protection Regulation (GDPR). The Spanish privacy watchdog explained the temporary prohibition of Worldcoin’s activities as a measure to avert potentially irremediable harm and to preserve individuals’ rights.

The current situation in Spain is part of a larger global discussion over the trade-off between technological progress and privacy rights. Similarly, France, Germany, Hong Kong, and Kenya have initiated their own investigations into Worldcoin’s operations due to similar privacy concerns.
The results of these inquiries, together with Worldcoin’s appeal against the Spanish ban, could have far-reaching consequences for the future of digital identity technologies and their compliance with established data protection standards.