The world of cryptocurrency just hit a roadblock in Portugal. Worldcoin, an ambitious project offering digital identity and cryptocurrency in exchange for biometric data, has been temporarily banned from collecting this sensitive information in the country.

Portugal Says "Não" to Biometric Data Buyout

The Portuguese National Data Protection Commission (CNPD) stepped in on March 26th to safeguard citizen privacy, particularly for minors. Their swift action resulted in a 90-day suspension of Worldcoin's controversial Orb device program, which collects iris scans, facial data, and other biometric information.

Concerns Over Consent, Transparency, and Minors

The CNPD raised several red flags regarding Worldcoin's data collection practices. They cited a lack of clear user consent, inadequate information provided to participants, and potential difficulties for users seeking to delete their data or revoke consent.

Adding fuel to the fire were reports of over 300,000 Portuguese citizens already surrendering their biometric data, raising concerns about the rapid proliferation of Orb devices, especially in commercial areas. The CNPD emphasized that biometric data is considered highly sensitive under the General Data Protection Regulation (GDPR) due to the inherent risks involved.

Minors, considered especially vulnerable, receive additional protection under European and national laws. The CNPD is conducting a thorough investigation, analyzing reports and considering further measures to ensure compliance with data protection regulations and safeguard citizens from potential harm.

Worldcoin's Global Identity Quest Hits More Snags

This isn't Worldcoin's first brush with regulatory bodies. Similar concerns regarding data collection and user consent led to a temporary ban in Spain earlier in March. This case saw a local court reject Worldcoin's appeal against the Spanish data regulator.

Furthermore, Worldcoin's ambitions faced scrutiny in Hong Kong and Kenya in 2023. Privacy concerns were raised in Hong Kong, while Kenya opted for a complete ban on local activities associated with the platform, including biometric identification. Despite these setbacks, Worldcoin has expressed willingness to collaborate with the Kenyan government to potentially resume operations.

The Future of Biometric Data in Crypto: A Balancing Act

Worldcoin's case highlights the ongoing tension between technological innovation and data privacy. While offering new avenues for digital identity and financial inclusion, the collection of biometric data raises serious concerns. As the cryptocurrency space evolves, finding a balance that prioritizes user privacy and promotes responsible data collection practices will be critical.