Portugal's data regulator, CNPD, has ordered Worldcoin to cease collecting biometric data for 90 days, citing concerns over citizens' data protection rights. According to a report by Reuters, CNPD highlighted risks related to unauthorized data collection from minors and inadequate mechanisms to erase the information and data collected from users.

However, Worldcoin refuted claims of non-compliance, citing ongoing efforts to address issues, including underage sign-ups. The iris-scanning project, which offers free cryptocurrency in exchange for facial scans, has attracted over 4.5 million users globally.

Privacy Concerns

Recently, the company announced a shift toward "personal custody" to grant users control over their data. Amidst ongoing investigations and bans in other countries, Worldcoin faces regulatory challenges regarding privacy concerns in handling biometric data.

Worldcoin's ambitious goal of establishing an "identity and financial network" has triggered regulatory scrutiny globally. According to its Founder, Sam Altman, such a system is crucial in navigating an AI-dominated world. However, privacy advocates caution against the risks associated with biometric data collection. Worldcoin has attracted interest from major investors, such as a16z crypto and Bain Capital Crypto.

Despite assurances of compliance, Worldcoin faces regulatory hurdles in multiple jurisdictions. This includes recent actions by Spain, Kenya, and Bavarian state regulators, indicating a broader trend of regulatory intervention.

Expect ongoing updates as this story evolves.