LONDON – A German data watchdog has been conducting an investigation into Sam Altman’s Worldcoin project since late last year due to concerns over its extensive processing of sensitive biometric data, according to the regulator’s president’s statement to Reuters.
Worldcoin, which recently launched, requires users to provide their iris scans in exchange for a digital ID and, in certain countries, free cryptocurrency, with the intention of establishing a new “identity and financial network.”
The investigation by the Bavarian State Office for Data Protection Supervision commenced in November 2022 due to worries that the project intends to process “sensitive data at a very large scale” using novel technology. Michael Will, the president of the state regulator, conveyed that they are the primary authority investigating Worldcoin under the European Union’s data protection rules, given that the company behind Worldcoin, Tools For Humanity, has a German subsidiary.
Will voiced concerns about the potential risks associated with these new technologies, including whether users have provided explicit consent for processing highly-sensitive biometric data based on “sufficient and clear” information.
Worldcoin has not yet responded to a request for comment. However, its website claims to have a “privacy-preserving” network, storing personal data in encrypted form.
The Worldcoin Foundation, based in the Cayman Islands, assured Reuters via email that it adheres to European Union rules and will continue to cooperate with regulatory bodies in their inquiries regarding privacy and data protection practices.
Since its launch, the Worldcoin project has seen people having their faces scanned by a shiny spherical “orb” at sign-up sites in various countries, including France, Germany, and Spain. Reportedly, 2.1 million users have signed up, with the majority during a two-year trial period.
The wide-scale collection and storage of biometric data have raised concerns among privacy advocates, who worry about potential surveillance and targeting of specific demographic groups.
Various European supervisory authorities have expressed interest in the Worldcoin project and have sought information about its data collection practices. France’s privacy watchdog stated that the legality of Worldcoin’s data collection “seems questionable,” while the British data regulator also announced its intention to investigate the project further.