Worldcoin Halts Operations in Spain Voluntarily Amid Data Protection Probe

The Spanish Agency for Data Protection (AEPD) has halted Worldcoin’s operations in Spain. The agency declared that Tools for Humanity Corporation, which manages Worldcoin, agreed voluntarily to cease collecting and processing personal data until the end of 2024, pending ongoing investigations into its data handling practices.

Worldcoin Faces Heightened Scrutiny Across Europe

The AEPD’s decision follows a broader trend of increasing scrutiny over Worldcoin’s operations across Europe. Germany’s Bayerisches Landesamt für Datenschutzaufsicht (BayLDA) also examines Worldcoin’s activities. This probe focuses mainly on how the organization processes personal user data. Reports indicate that a resolution from the BayLDA is expected soon, and it will align with the findings of other European supervisory authorities. The collaborative efforts underline a unified European stance on privacy and data protection, emphasizing the need for stringent compliance by companies operating in the digital identity space.

As per TFH Tools for Humanity, a Worldcoin contributor, voluntarily offered to extend the pause of Worldcoin orb operations in Spain. This allows BayLDA in Bavaria, the competent lead authority responsible for overseeing Worldcoin’s GDPR compliance, to complete its audit—a process that TFH has fully participated in for over a year. Specifically, TFH committed not to perform orb operations in Spain until the end of the calendar year 2024, until the BayLDA consultation process with other EU data protection authorities is concluded.

Moreover, the AEPD had previously ordered the cessation of Worldcoin’s data activities in Spain as early as March 2024. This directive was part of a broader regulatory response to the project’s data collection methods, which have raised privacy concerns among various stakeholders. During this period of increased scrutiny, Worldcoin has implemented several measures to enhance user security and data privacy. These include open-sourcing its biometric data system and allowing users to delete their iris codes securely.

Hong Kong Halts WLD Operations Over Data Concerns

Worldcoin’s regulatory challenges are not confined to Europe. On May 22, authorities in Hong Kong mandated a halt to Worldcoin operations over concerns related to the prolonged retention of sensitive biometric data. Despite these hurdles, Worldcoin has significantly grown its user base and transaction volume. As of April 2024, the platform boasted 10 million users and recorded 70 million transactions, showcasing widespread adoption across diverse markets.

In a notable incident underscoring Worldcoin’s real-world utility, an African user reportedly used the platform’s cryptocurrency to buy 13 goats, highlighting the digital currency’s potential in everyday transactions. Furthermore, April marked the launch of World Chain, Worldcoin’s blockchain network. This development aims to prioritize human-centric applications, improve efficiency, and foster utility in Web3 environments.

Additionally, Worldcoin announced plans to increase the supply of its WLD token by up to 19% over the next six months. This will likely accommodate the growing demand and enhance liquidity within its ecosystem.

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