Worldcoin, a project aiming to create a global digital identity system, is locked in a legal battle with Spanish authorities. On March 6th, Spain’s Data Protection Agency (AEPD) issued a three-month ban on Worldcoin’s operations, citing concerns about data privacy and user consent. Worldcoin’s developer, Tools for Humanity, has responded by filing a lawsuit against the ban.
The crux of the issue lies in Worldcoin’s data collection practices. Users would receive cryptocurrency and a digital ID in exchange for iris scans. Spanish authorities received complaints that Worldcoin wasn’t transparent enough about data protection and lacked a mechanism for users to withdraw consent. Additionally, the AEPD expressed worries about the project’s handling of sensitive biometric data.
Worldcoin vehemently denies these accusations. Jannick Preiwisch, data protection officer for both Worldcoin Foundation and Tools for Humanity, claims the Spanish regulators’ actions were inaccurate and misleading. He emphasizes Worldcoin’s compliance with EU’s General Data Protection Regulation (GDPR) and highlights their ongoing communication with the Bavarian Data Protection Authority (BayLDA), responsible for EU-wide GDPR enforcement.
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The lawsuit argues that Spain’s regulators bypassed the established GDPR process. Worldcoin maintains it operates lawfully and cooperates with local authorities. The company also emphasizes its efforts to clarify its data practices to Spanish regulators, which they claim went unanswered “for months.”
This situation sheds light on the ongoing tensions between innovative tech and data privacy regulations. Worldcoin views the ban as an overreach, hindering a project with potential global benefits. Spain, on the other hand, prioritizes user protection and fears “irreparable damage” if the data collection continues unchecked.
The coming months will be crucial as the lawsuit progresses. The outcome could set a precedent for how other countries handle similar data collection practices in the future.
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