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Home»Regulation»Worldcoin is under fire in Colombia for possible data protection violations
Worldcoin under fire in Colombia over potential data protection lapses
Regulation

Worldcoin is under fire in Colombia for possible data protection violations

2024-08-22No Comments3 Mins Read
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Colombia’s Superintendence of Industry and Commerce (SIC) has initiated formal proceedings against the Worldcoin Foundation and Tools for Humanity for alleged violations of the country’s personal data protection rules.

According to the August 21 announcement, the regulatory body, acting under its mandate to protect personal data, issued the complaint on August 16.

Regulatory probe

The SIC’s investigation focuses on whether the organizations violated Colombian laws governing the collection and processing of sensitive personal data.

The investigation aims to determine whether the Worldcoin Foundation and Tools for Humanity have failed to obtain explicit and informed consent from individuals for the collection of their data and whether they have failed to implement adequate data processing and security policies.

The investigation will also examine whether the companies have provided sufficient mechanisms for handling complaints and consultation with those involved.

If the allegations are substantiated, the SIC could impose severe penalties, including fines of up to 2,000x the monthly minimum wage, the suspension of related activities for up to six months, or the temporary or permanent cessation of operations.

The SIC emphasized its commitment to protecting the fundamental rights of citizens and urged the public to be vigilant in protecting their personal information. The charges are currently under review and the involved parties have been notified. The decision does not offer any possibility of appeal.

The ongoing investigation highlights the increasing scrutiny of technology companies’ data practices, especially as they expand their operations globally. Worldcoin, which aims to create a global digital identity system using biometric data, has faced similar regulatory challenges in other jurisdictions, raising questions about the adequacy of its data protection measures.

See also  Head of FATF urges G7 to bring order to 'legal crypto space'

Series of challenges

Worldcoin, co-founded by Sam Altman, has faced scrutiny worldwide for its plan to create a global digital identity system using biometric data.

The project first came under fire in Kenya due to concerns over data protection laws, which ultimately led to authorities suspending operations in August 2023. The country later ended its investigation into the project in June without alleging any wrongdoing.

European authorities have also been investigating the project since last year for possible violations of the General Data Protection Regulation (GDPR). Germany’s Bavarian state agency is investigating Worldcoin’s compliance with consent and data processing standards, while France’s CNIL is investigating whether its methods comply with national privacy laws.

Spain has extended the ban on Worldcoins activities in the country until the end of this year, while Hong Kong recently banned data collection over concerns about privacy violations. Portugal also previously suspended Worldcoin’s operations for three months period.

Meanwhile, Argentina has accused the project of violating consumer laws and is demanding a $1.2 million fine.

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