Worldcoin, operating under its developer Tools for Humanity Corporation, has announced a temporary suspension of its activities in Spain until at least the conclusion of 2024. This decision stems from an ongoing investigation by the Spanish Agency for Data Protection (AEPD) into the company's practices regarding data collection and processing.

The move to pause operations in Spain reflects a broader trend of regulatory scrutiny faced by the Worldcoin project across various international jurisdictions.

The investigation by the AEPD is part of a wider concern echoed by data protection authorities in other nations, including Germany and Hong Kong. These authorities are examining the scope and methodology of Worldcoin's biometric data collection, particularly the acquisition of iris and facial images to establish a universal digital identity.

The Bayerische Landesamt für Datenschutzaufsicht (BayLDA) in Bavaria, Germany, is leading the European investigation, with anticipated conclusions soon. The BayLDA aims to reach a decision that satisfies the requirements of all involved European supervisory authorities.

Spain's National Court has backed this inquiry, emphasizing the importance of safeguarding personal data over the operational interests of the company.

In response to these regulatory challenges, Worldcoin has implemented several adjustments to its data management practices. Notably, the company has open-sourced its biometric data system, integrating secure multi-party computation (SMPC) technology. This approach enhances data security by dispersing encrypted segments of a secret across multiple parties, preventing any single entity from accessing the complete dataset.

Moreover, the Worldcoin Foundation, in partnership with technology experts from TACEO and Tools for Humanity, has developed an updated implementation of SMPC to address scalability and cost concerns, crucial as the demand for biometric data processing capabilities rises worldwide.

Worldcoin has also enhanced its user interface to enable individuals to securely delete their previous iris codes and introduced robust measures to verify user ages and provide options for opting out of iris scans.

Despite the operational suspension in Spain, Worldcoin has experienced only a minor pullback from its recent high, with the asset trading at $4.76, maintaining a modest increase of 0.7% over the past day.