Spain has recently implemented a temporary prohibition on Worldcoin, a digital identification cryptocurrency project established by Sam Altman, the CEO of OpenAI. This action was taken due to apprehensions surrounding the gathering and handling of biometric information.

The Spanish Data Protection Agency (AEPD) has introduced a preventive measure that suspends Worldcoin's operations within the country for a duration of up to three months. This move follows complaints received by the AEPD regarding various issues related to Worldcoin's procedures, such as inadequate user information disclosure, data collection from minors, and challenges concerning the withdrawal of consent.

Worldcoin's methodology entails scanning users' eyes using a device named "orbs" to generate a distinct form of identification known as "World ID," which is then rewarded with Worldcoin cryptocurrency. The AEPD has instructed Tools for Humanity, the entity responsible for managing users' personal data, to halt the acquisition of new data and discontinue the use of previously gathered data in Spain.

Emphasizing the necessity for "special protection" when handling biometric data due to the "significant risks to individuals' rights," the AEPD has expressed concerns about potential data transfers to external parties. Despite the ban, Worldcoin's data protection officer, Jannick Preiwisch, has criticized the AEPD's actions, alleging that the agency is bypassing EU regulations and disseminating inaccurate information about Worldcoin.

The restriction imposed in Spain is part of a broader examination of Worldcoin's activities, with other nations like France, Germany, and Kenya also investigating the company's methodologies.

Worldcoin has encountered technical challenges post-launch, with reports of users facing difficulties in claiming their tokens after eye scans and instances of the system being deceived into generating multiple accounts for the same individual.

Privacy Concerns Associated with Worldcoin

The privacy concerns linked to Worldcoin primarily center around the acquisition and processing of biometric data, particularly through the utilization of orbs for iris scanning. Various privacy experts and regulators in countries like France, Germany, Kenya, and Spain have raised alarms regarding the potential misuse of this sensitive data. Worries encompass the security of biometric information, the threat of data breaches, and the repercussions of leaked biometric data, especially in regions where Worldcoin operates. Critics have highlighted the risks of personalized marketing, the emergence of a black market for verified credentials, and the challenges in ensuring data security and privacy amidst extensive biometric data collection.

Additionally, there are concerns about connecting immutable biometric traits to financial transactions, the absence of democratic consensus on Worldcoin's vision, and the necessity for robust measures to safeguard individuals' rights and privacy.