In a significant move against data privacy breaches, South Korea’s Personal Information Protection Commission (PIPC) has imposed a hefty fine of 1.1 billion Korean won (approximately $829,000) on the Worldcoin Foundation and its affiliate, Tools For Humanity (TFH). This ruling, announced during a plenary session on September 25, underscores the growing scrutiny on cryptocurrency projects regarding compliance with personal information protection laws.
The investigation into Worldcoin began in February, sparked by complaints that the company was unlawfully collecting biometric data in exchange for its cryptocurrency. The PIPC revealed that nearly 30,000 South Koreans utilized iris scans to access the Worldcoin platform, raising significant red flags regarding privacy and data handling practices.
The PIPC’s findings were alarming. The commission confirmed that Worldcoin and TFH collected sensitive biometric information without a legitimate legal basis, violating the Personal Information Protection Act (PIPA). Reports indicate that around 100,000 South Koreans downloaded the Worldcoin app, but the company failed to adhere to mandatory transparency requirements. Specifically, users were not informed about the purpose of data collection or the duration for which their data would be retained. Moreover, there was no notification regarding the transfer of personal data to foreign entities.
This lack of compliance extends to the company’s failure to implement procedures for users to request the deletion of sensitive data. The PIPC highlighted that TFH lacked adequate age verification processes, which are critical to preventing children under 14 from registering on the platform. Such oversights raise serious concerns about the protection of vulnerable populations and adherence to legal standards.
Despite the regulatory challenges in South Korea, Worldcoin’s native token has experienced a notable uptick in value. According to Cointelegraph Markets Pro data, the WLD token saw a remarkable rise from $1.60 on September 19 to $2.16 by September 26, marking a 35% increase. This surge raises questions about market sentiment and the potential resilience of cryptocurrency projects in the face of regulatory scrutiny.
Also Read: Worldcoin (WLD) Surges 14.32%, But Still Down 80% Since April – Is a Recovery In Sight?
As the cryptocurrency landscape continues to evolve, the actions taken by the PIPC serve as a reminder of the critical importance of compliance with data protection laws. Companies operating in this space must prioritize user privacy and transparency to build trust and mitigate regulatory risks. With the Worldcoin Foundation facing corrective orders and recommendations for improvement, it remains to be seen how the project will address these concerns and navigate the complexities of the global regulatory environment.
The fine levied by South Korea’s PIPC could serve as a cautionary tale for other cryptocurrency firms, emphasizing the need for stringent data protection measures and proactive compliance strategies to avoid similar pitfalls in the future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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