Since its highly anticipated launch, Worldcoin, the brainchild of ChatGPT founder Sam Altman, has garnered significant attention in the cryptocurrency sphere. However, concerns about the legality of its biometric data collection techniques have led European regulators to closely examine the project. Notably, the French privacy authority, CNIL, has raised questions about the gathering and storage of biometric data, prompting the British data regulator to launch its own inquiries.

Worldcoin’s registration process requires users to undergo iris scans in exchange for a digital ID and, in certain countries, even free cryptocurrency. The project proudly boasts 2.1 million user registrations, primarily during its two-year trial period.

To complete registration, individuals must have their faces scanned using a spherical “orb” deployed at various locations worldwide. This unique approach is part of Worldcoin’s global identity initiative, aiming to establish a “proof of personhood” for its users.

The Worldcoin Foundation, based in the Cayman Islands, proclaims itself as the steward of the Worldcoin protocol, highlighting its dedication to individual privacy and robust privacy measures to comply with regulations.

Despite these assurances, European regulators, notably CNIL and the Bavarian state authority in Germany, remain skeptical of Worldcoin’s data collection methods.

CNIL’s investigation has revealed that the German authority holds jurisdiction over the project, prompting both watchdogs to collaborate and address the concerns regarding the collection of biometric data.

Worldcoin’s employment of specialized orbs to scan individuals’ eyes and gather biometric iris data in exchange for a Worldcoin ID and 25 Worldcoin tokens has raised eyebrows. While the project experiences rapid user adoption, concerns surrounding data privacy and security persist.

Prominent figures in the cryptocurrency space, including Ethereum co-founder Vitalik Buterin, have voiced potential issues related to accidental exposure of sensitive personal information through iris scans. As a response to these concerns, the British Information Commissioner’s Office has initiated an investigation, prompting the project to undertake a Data Protection Impact Assessment (DPIA) to address data collection practices.

Worldcoin has assured its commitment to comply with data protection laws, such as the General Data Protection Regulation (GDPR) and the UK Data Protection Act, in order to address privacy concerns adequately.

While Worldcoin has achieved popularity and witnessed a surge in network activity, slow adoption rates in specific regions and ongoing privacy concerns have cast doubts on its future success.

Undeterred by the mixed reactions within the crypto community, Worldcoin remains focused on expanding its presence in crypto-friendly jurisdictions and increasing the number of retinal scanning devices at their disposal.

Featured image from Tools for Humanity showcases the emerging technology that Worldcoin employs, illustrating the project’s ambition and innovative approach.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.