Scrutiny of iris-scanning crypto project Worldcoin grows

LONDON, March 26 (Reuters) - Governments around the world are scrutinising Worldcoin, a crypto project co-founded by OpenAI CEO Sam Altman that was launched in July 2023.

More than 4.5 million people globally have signed up to have their irises scanned by Worldcoin's "orb" devices in exchange for a digital ID and free cryptocurrency.

Altman says its ID will allow users to, among other things, prove online that they are human, notably in a future world he says will be dominated by artificial intelligence.

Worldcoin has drawn criticism from privacy campaigners over its data collection. It has said the biometric data is either deleted or stored in encrypted form, and that it is "committed" to working with regulators.

Here's the latest on action taken by governments:

On March 6, Spain's data privacy watchdog, the AEPD, banned Worldcoin for up to three months, ordering it to cease the collection of personal data and stop using data it had already gathered.

The AEPD said its action came after several complaints regarding insufficient information, the collection of data from minors or not allowing for the withdrawal of consent.

Spain's High Court upheld the temporary ban, dismissing an appeal by Worldcoin which asked for the ban to be lifted while it deliberates.

On March 26, Portugal's data regulator, the CNPD, said it ordered Worldcoin to stop collecting biometric data for 90 days.

The regulator said it had received dozens of complaints in the last month about unauthorised collection of data from minors, "deficiencies in the information provided to the data subjects" and "the impossibility of erasing the data or withdrawing consent."

More than 300,000 people in Portugal have provided Worldcoin with their biometric data, the CNPD said.

In Argentina, where Worldcoin says interest, opens new tab in the project is strong, the Agencia de Acceso a Informacion Publica (AAIP) data regulator said, opens new tabin August last year it was investigating Worldcoin over its collection, storage and use of personal data.

In a letter, opens new tab dated Aug. 7, 2023, the AAIP asked Worldcoin for information about the project, including mitigation of risks and the "legal basis for the processing of personal data."

Britain's data regulator said in July 2023 that it would examine Worldcoin.

"We note the launch of Worldcoin in the UK and will be making further enquiries," the Information Commissioner's Office said.

The regulator said in March 2024 that its enquiries with Worldcoin are ongoing.

France's data watchdog CNIL carried out "checks" at Worldcoin's Paris office, a spokesperson said in August 2023.

CNIL had previously said it was aware of the Worldcoin project and that the legality of its biometric data collection "seems questionable". GERMANY

The Bavarian state regulator has said it is the lead authority investigating Worldcoin under the European Union's data protection rules because Tools For Humanity, the company behind Worldcoin, has a German subsidiary there.

Michael Will, the state regulator's president, told Reuters in March 2023 that the regulator has analysed extensive documents and carried out on-site checks. The regulator expects to present its final findings to European colleagues "very soon", Will said.

Financial regulator Bafin is also investigating the digital currency, according to German business daily Handelsblatt.

In August last year, Kenya suspended Worldcoin's local activities while the government assesses potential risks to public safety.

A preliminary review had raised concerns, including that obtaining consumer consent in return for a monetary award bordered on inducement, the Communications Authority of Kenya and the Office of the Data Protection Commissioner said.