South Korea Investigates Worldcoin Over Privacy Concerns

The cryptocurrency Worldcoin (WLD) is facing regulatory scrutiny as South Korea’s Personal Information Protection Commission (PIPC) launches an investigation citing privacy concerns. This development has sparked discussions in both the cryptocurrency community and the broader technology sector, raising questions about the project’s data collection practices and regulatory compliance while impacting Worldcoin’s price.

South Korea Probes Worldcoin (WLD) Over Privacy Concerns

The PIPC has begun investigating Worldcoin (WLD) following complaints regarding the collection and processing of personal information, particularly related to facial and iris recognition. The probe, which commenced on February 29, is concerned about potential violations of the Personal Information Protection Act.

In a press release, PIPC revealed that Worldcoin affiliates are gathering facial and iris recognition information at roughly ten locations in South Korea. The commission plans to thoroughly investigate the collection, processing, and potential overseas transfer of sensitive personal data. If violations are confirmed, the data protection authority will take appropriate action in accordance with relevant laws and regulations.

Potential Impact on Price

The news of the investigation has had an immediate impact on Worldcoin’s price, resulting in a slight retreat after an initial 9% surge in the last 24 hours. This regulatory scrutiny coincides with Worldcoin’s increasing traction in the cryptocurrency market, highlighting potential risks associated with regulatory compliance and privacy concerns.

Worldcoin, co-founded by OpenAI CEO Sam Altman, utilizes iris scanning technology through the Orb device for verification purposes. Participants receive Worldcoin (WLD) tokens in exchange for signing up to the protocol. However, this unique sign-up process has raised concerns in various jurisdictions, with South Korea being the latest to address data privacy and protection issues.

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The investigation by South Korea’s privacy watchdog adds to the regulatory challenges faced by Worldcoin (WLD), emphasizing the importance of adhering to stringent privacy standards in the cryptocurrency space. As global regulators continue to scrutinize digital assets, projects like Worldcoin (WLD) must navigate a complex regulatory landscape to ensure compliance and maintain trust among investors and users.

As of writing, Worldcoin (WLD) ‘s price has increased by 4.17% in the last 24 hours to $8.03, with trading volume remaining near the flatline at $723.33 million. The token reached a high of $8.34 this morning before reversing its course following the news.