Worldcoin suspends Spanish operations amid data protection investigation

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Worldcoin has agreed to halt its operations in Spain until the end of the year or until the German data authority resolves its ongoing investigation into data protection concerns.

Worldcoin ceases operations in Spain following directive from data protection authorities

The Spanish Data Protection Agency (AEPD) announced on June 4 that Tools for Humanity Corporation, the company behind the identity and financial network Worldcoin, has committed to suspend its data collection and processing activities in Spain until the end of 2024 or until the conclusion of an ongoing investigation. This decision came following an order from Spanish authorities in March 2024 for Worldcoin to stop collecting and processing personal data in Spain under the Worldcoin project framework.

Currently, the Bavarian Data Protection Authority in Germany Bayerische Landesamt für Datenschutzaufsicht (BayLDA), is conducting an investigation into Worldcoin’s handling of personal user data. According to the announcement, BayLDA is actively pursuing its investigations and is expected to reach a final decision “soon,” which will be coordinated with regulatory authorities across Europe, including Spain.

Enhanced security measures implemented by Worldcoin

Amid these investigations, Worldcoin has improved its security measures. The company has made its biometric data system open source and confirmed that users now have the ability to safely delete old iris codes. Additionally, it has implemented stricter controls to verify users’ age and the ability to remove iris codes.

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Worldcoin’s data protection concerns are not limited to Spain and Germany. On May 22, Hong Kong authorities ordered a halt to the project’s activities following a ruling that the retention of sensitive biometric data, including facial and iris images, for up to ten years for training artificial intelligence (AI) models ) was unjustifiable.

Despite regulatory scrutiny, Worldcoin has continued to gain popularity. In April 2024, the project celebrated a milestone of 10 million users and 70 million transactions. The project also gained attention when a man in Africa used his cryptocurrency to buy about 13 goats.

Additionally, in April, Worldcoin announced the launch of its “human-centric” blockchain network, World Chain. This new network aims to prioritize human users, improve efficiency and promote the practicality of Web3 applications. The project also revealed plans to increase the supply of its token, WLD, by up to 19% over the next six months.

The ongoing investigation by European data protection authorities, particularly those in Spain and Germany, reflects broader concerns about Worldcoin’s practices. The resolution of these investigations will be critical in determining Worldcoin’s future operations in these regions.

Worldcoin’s operations in Europe have come under heavy scrutiny by data protection authorities, leading to a temporary suspension of operations in Spain. The German data protection authority, Bayerische Landesamt für Datenschutzaufsicht (BayLDA), is actively investigating the way Worldcoin handles personal user data, with the aim of achieving a solution that aligns with other European supervisory authorities. This coordinated effort highlights the stringent data protection standards in the European Union and reflects broader concerns about Worldcoin’s retention and processing of sensitive biometric data. Despite these challenges, Worldcoin continues to adapt by improving its security measures and maintaining its growth trajectory within the region.


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