More Latin American regulators suspicious of Worldcoin data collection practices

In attempting to establish its World ID protocol and WLD cryptocurrency, much-interrogated iris biometrics scheme Worldcoin may have to settle for a regional approach, as it continues to face pushback in some countries while finding success in others.

Finds some hosts more welcoming than others

Colombian data protection authorities are the latest to wave a red flag in Worldcoin’s direction, tweeting out a warning that accuses the Cayman Islands-based Worldcoin Foundation and Worldcoin parent company Tools for Humanity of potentially violating the nation’s personal data protection regime. The company began collecting iris biometrics in Colombia in May. It currently hosts biometrics-scanning Orbs in 25 locations in Colombia.

The Superintendence of Industry and Commerce (SIC)’s statement says “the purpose of the proceedings is to determine whether the investigated companies have infringed the Colombian personal data protection regime in the collection of sensitive personal data in relation to the implementation of personal data processing policies and privacy notices.

South America has not been especially welcoming to Worldcoin, of which OpenAI CEO Sam Altman is a founder. Ecuador recently issued an alert related to “risks associated with the delivery of biometric data” to the company, not two months after it had set up shop there. The nation’s Superintendency of Companies cited “a lack of clarity regarding the use of this sensitive information” as its primary concern.

In Buenos Aires, Argentinian regulators fined Worldcoin Foundation 194 million pesos (roughly US$210,000) for failing to acquire accreditation as an identity services provider and for failing to post notice that the service is restricted to those of 18 years or older. The fine followed an inquiry by the Argentine Agency for Access to Public Information (AAIP) into the legality of Worldcoin’s data collection practices.The company was also accused of violating Argentina’s National Consumer Protection Law.

Wolrdcoin also discontinued its Orb operations in Brazil shortly after launching there. It remains to be seen how authorities in Peru respond.

But for South American regulators, at least for now, the verdict on the Worldcoin ecosystem’s current incarnation is that the digital ID project is too vague on key privacy details and not worth the risk.

Europe, for its part, has proven similarly skeptical of Worldcoin’s operations.

Korean survey, Malaysian deal pave way for foothold in Asia

In Asia, however, reception has been somewhat more cordial. A recent blog post from the company says it surveyed World ID holders in South Korea and found they expressed “overwhelming support for the Worldcoin project and proof of humanness.”

“Of the 1,100+ respondents, more than 9 in 10 agreed that technology that differentiates between humans and bots online, like World ID, is necessary. Additionally, 84 percent of respondents agreed that Korea should become a global hub for these kinds of innovations, demonstrating high expectations for the country in the age of AI.”

Elsewhere in Asia, Worldcoin recently signed a Memorandum of Understanding (MOU) with Mimos Berhad, the applied research and development agency for the government of Malaysia, which includes the possibility of collaborating on manufacturing the company’s Orbs. And Singapore has seen line-ups for Worldcoin’s iris scanning service – although it also attracted a glance from Singapore’s Personal Data Protection Commission, which advised heightened caution when submitting biometrics through the Orb.

Of course, it would be remiss not to mention that South Korea’s data protection agency is still investigating Worldcoin, and that the firm’s Hong Kong offices were raided in January, leading to a subsequent ban on operating in the territory.

The company, however, is proving to be nothing if not persistent, and registration is currently open for Encode x Worldcoin Educate, a series of workshops on the innovation in the Worldcoin ecosystem, designed to “empower real-world applications and enhance user experience in the era of AI.”

Article Topics

biometric data  |  biometrics  |  data protection  |  digital ID  |  iris biometrics  |  World  |  World ID  |  World ID Orb