Worldcoin’s “Questionable” Practices
Worldcoin (WLD), the crypto project launched by OpenAI’s Sam Altman, is currently under investigation by the French data protection regulator CNIL for “questionable” practices. “The legality of this [data] collection seems questionable, as do the conditions for the preservation of biometric data,” a CNIL spokesperson stated, referring to Worldcoin’s practice of scanning retinas to ensure that no single person can claim crypto rewards twice.
CNIL has initiated investigations, supporting the work of Bavarian privacy regulators who have primary responsibility under EU law. The outcome of these investigations could have significant implications for Worldcoin and similar projects that rely on biometric data.
Worldcoin’s Response and Future Implications
In response to the investigation, the Worldcoin Foundation stated, “The project will continue to cooperate with governing bodies on requests for more information about its privacy and data protection practices. We are committed to working with our partners across Europe to ensure that the Worldcoin project meets regulatory requirements and provides a safe, secure, and transparent service for verified humans.”
The project reiterated that it complies with the EU’s law on biometric data collection and transfer, the General Data Protection Regulation (GDPR), and continues to assess local regulations to ensure compliance. The outcome of these investigations and Worldcoin’s response could set a precedent for future crypto projects that utilize biometric data.
The Impact on Worldcoin’s Market Performance
Despite the ongoing investigation, Worldcoin’s token, WLD, has shown resilience in the market. At the time of writing, WLD tokens were trading up 1.5% over 24 hours at $2.19. However, the investigation’s results could significantly impact Worldcoin’s future market performance and overall acceptance in the crypto community.
