Worldcoin Down 25% Over Last Week Amid More Regulatory Action

Worldcoin Faces Legal Issues in Several Countries

Worldcoin, co-founded by OpenAI CEO Sam Altman, aims to create a new “human identity and financial network” using retina scans. The project aims to create a “proof-of-personhood” network by registering verified humans through eyeball scans in return for crypto payments in its native token WLD.

The project has received notable criticism since its debut. Worldcoin scans people’s irises and eyes to ensure that the crypto is distributed fairly, raising privacy and security concerns. Its biometric data collection has also raised questions about how this sensitive information will be stored, protected, and potentially used.

Furthermore, some have questioned Worldcoin’s methods of obtaining consent. A 2022 investigation by MIT Review found that Worldcoin used deceptive marketing practices, collected more personal data than disclosed, and failed to obtain meaningful informed consent.

There are also concerns that Worldcoin’s efforts to attract users through the promise of “free” cryptocurrency tokens may disproportionately target economically-disadvantaged individuals. Critics argue that the project may take advantage of vulnerable populations who require financial assistance in exchange for their biometric data.

These concerns have led to many countries taking legal action against the project. It was also recently revealed that a German watchdog and France’s privacy watchdog CNIL, have been investigating the Worldcoin project since late last year due to concerns over its large-scale processing of sensitive biometric data.

Kenya and Argentina Launch New Probes into Worldcoin

Earlier this week, reports surfaced in Nigeria that Nairobi police, in collaboration with officials from various agencies, had conducted a raid on a Worldcoin warehouse in the capital city of Kenya. It was reported that law enforcement officials seized documents and machinery, which were subsequently sent to the Directorate of Criminal Investigations headquarters for examination.

As per local media outlets, Immaculate Kassait, the commissioner of Kenya’s Office of Data Protection, claimed that Worldcoin’s parent company, Tools for Humanity, failed to disclose its true intentions during its registration process in Kenya.

The raid came shortly after the Kenyan government announced the suspension of Worldcoin’s operations last Wednesday. At the time, the country said it aimed to thoroughly investigate the legality of Worldcoin’s activities, safeguarding the data collected and its proposed utilization.

Similarly, the Argentine Agency for Access to Public Information (AAIP) announced on Tuesday that it had launched a probe into Worldcoin to determine the legality of its data collection practices within the South American nation. The AAIP’s primary objective is to assess the security protocols in place to protect the privacy of Worldcoin users in Argentina.

The agency highlighted the growing public attention on this matter due to the process of scanning the faces and irises of numerous individuals in exchange for financial compensation at various locations in Buenos Aires City, as well as the provinces of Buenos Aires, Córdoba, Mendoza, and Río Negro.

According to the AAIP, entities like Worldcoin must register with the agency, disclose their data processing policies, state the purpose of collecting sensitive information, specify the retention period for such data, and provide details of the security measures employed to safeguard personal information.

Nevertheless, Worldcoin’s native token WLD is trading at $1.71, down by 2.61% over the past day. The token, launched last month, has hit an all-time high of around $3.58, recorded on July 24.