Spain has extended its ban on Worldcoin’s operations, a project led by Tools for Humanity Corporation, until the end of the year or until the Bavarian Data Protection Authority (BayLDA) reaches a final decision.
The extension follows a precautionary measure imposed by the Spanish Data Protection Agency (AEPD) in March, which ordered Worldcoin to cease collecting and processing personal data in Spain.
Worldcoin Foundation and Tools for Humanity have not made a public statement regarding the extension.
BayLDA decision
The AEPD’s order was made under Article 66.1 of the General Data Protection Regulation (GDPR), which aims to safeguard individuals’ rights and freedoms.
The Spanish National Court recently upheld the ban and rejected Worldcoin’s appeal, prioritizing the protection of personal data over the company’s interests.
Worldcoin’s legally binding commitment ensures that its operations will remain halted until the BayLDA completes its investigation. The Bavarian authority, where Worldcoin’s main European office is located, is expected to conclude its investigation in the coming weeks.
The agreement does not limit the AEPD or BayLDA’s authority to implement further supervisory measures if necessary. The collaboration between the two data protection authorities continues, with AEPD as an interested party under the GDPR framework.
Regulatory challenges
Worldcoin has faced scrutiny and controversy since its inception. Launched to create a global identification system via iris scans, the project has been criticized for privacy concerns and the potential misuse of biometric data.
The project’s founders, including OpenAI CEO Sam Altman, envisioned Worldcoin as a way to use blockchain technology to ensure universal basic income and financial inclusion. However, the collection and storage of biometric data have alarmed privacy advocates and regulatory bodies worldwide.
Worldcoin is facing regulatory challenges in other jurisdictions, including a ban on its operations in Hong Kong and Kenya — the latter of which said its activities amount to espionage.
The outcome of the BayLDA’s decision will be crucial in determining the future of Worldcoin’s operations in Spain and potentially across Europe as the company navigates the stringent data protection regulations.
The case also sets a precedent for how emerging technologies involving biometric data are regulated and managed in the EU.
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