Worldcoin, the new favorite of the market, is now facing worldwide scrutiny. The Bavarian State Data Protection Supervision Office, a German data watchdog, has launched an investigation against the altcoin project. Behind this development are concerns about the large-scale collection of sensitive biometric data.
The trending altcoin project is now under investigation!
Michael Will, the head of the regulatory agency, made a statement on the subject. In this regard, a German data watchdog said that OpenAI CEO Sam Altman has been investigating the Worldcoin project since late last year due to concerns about large-scale processing of sensitive biometric data.
As you follow on Kriptokoin.com, Worldcoin entered the market like a wind last week. However, it soon raised several concerns. Because Worldcoin requires users to provide iris scans in exchange for a digital ID and free cryptocurrency in some countries. The project says it’s doing this as part of its plans to create a new “identity and finance network.”
Claim: Worldcoin poses a significant set of risks!
Michael Will said that as Tools For Humanity, the company behind Worldcoin, is a subsidiary in Germany, the Bavarian state regulator is the chief official investigating Worldcoin under the European Union’s data protection rules. “These technologies, at first glance, are neither established nor well analyzed for the specific primary purpose of transactions in the field of transferring financial information,” Will said. Will also noted that this poses a number of risks, including whether users expressly consent to the processing of their highly sensitive biometric data on the basis of “sufficient and clear” information.
Meanwhile, Worldcoin has not yet made a statement on the subject. The website describes its network as “protecting privacy”. Also, the altcoin project says that personal data is stored in encrypted form.
2.1 million people signed up for Worldcoin
The Worldcoin Foundation, a Cayman Islands-based organization, made a statement to Reuters last week. In this statement, he said that he complies with the rules of the European Union. He also noted that the governing bodies will continue to cooperate with institutions on privacy and data protection practices.
Since the launch of the project, people have been scanning their faces with a bright spherical “sphere”. Prospective users do this through registration sites around the world, including France, Germany, and Spain. Worldcoin says 2.1 million people signed up, mostly during its trial period over the past two years.
Concerns over altcoin cause investigations
Privacy advocates have long voiced concerns about the large-scale collection and storage of biometric data. This, in turn, could increase surveillance or target specific demographic groups. Michael Will says that some European supervisory authorities see Worldcoin as a point of interest. Therefore, he adds that he is requesting information.
France’s privacy watchdog told Reuters on Friday that the legality of Worldcoin’s data collection “seems to be questionable”. The UK’s data regulator has also stated that it will investigate the altcoin project.
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