Worldcoin, identified by its ticker WLD -0.20%, has announced the extension of its suspension in Spain until the end of 2024, or until an ongoing audit by the German data protection authority is completed. This move follows the General Data Protection Regulation (GDPR) framework established by the European Union.

In a statement, Worldcoin revealed that "Tools for Humanity," a major contributor to the project, has voluntarily decided to extend the halt of Worldcoin orb operations in Spain. Tools for Humanity was co-created by OpenAI CEO Sam Altman and is the driving force behind Worldcoin. The project aims to create a system where individuals can prove their humanity by scanning their eyeballs with a Worldcoin orb, which in turn grants them WLD tokens and generates a World ID to affirm their personhood.

The concept of establishing digital identities to distinguish humans from AI-driven online entities is crucial, especially as the internet anticipates a surge in AI bots. Companies like Tools for Humanity emphasize the importance of this distinction to maintain the integrity of human interactions online.

Worldcoin has faced scrutiny from various governmental bodies due to concerns about personal data protection. The Spanish Data Protection Agency (AEPD) initially ordered Worldcoin to cease operations in March. On Tuesday, the AEPD reaffirmed its stance, stating that Tools for Humanity has made a legally binding commitment not to resume operations in Spain until the end of the year or until the Bavarian Data Protection Authority (BayLDA) concludes its audit of the company's data processing practices.

The BayLDA, the primary authority for data processing oversight under the GDPR, has been working with Tools for Humanity for over a year. Recently, the company has taken several measures to reassure data privacy advocates. In March, Worldcoin introduced "Personal Custody," an initiative prohibiting new sign-ups from storing and encrypting their biometric data. Additionally, individuals who previously signed up can now request the deletion of their numeric "iris code," created during the eyeball scan. Worldcoin also implemented a policy to prevent individuals under 18 from registering.

Thomas Scott, Chief Legal Officer of Tools for Humanity, commented on the situation: "While it is encouraging that, in a recent survey of World ID users in Spain, more than 80% of the 21,000 respondents said they believe technologies like World ID are important to distinguish between bots and humans online, and nearly 90% of them support the project’s return to Spain, we voluntarily offered to extend pausing orb operations in the country.”

Worldcoin's commitment to addressing data privacy concerns and its ongoing cooperation with the BayLDA highlight the company's efforts to ensure the security and ethical handling of biometric data. As the project awaits the audit's conclusion, it remains focused on creating a secure digital identity system for the future.