Portuguese Authorities Order Worldcoin To Stop Collecting Biometric Data

JAKARTA - Portugal's data regulatory authorities have ordered Sam Altman's slice scanning project, Worldcoin, to stop collecting biometric data for 90 days. This was conveyed on Tuesday, March 26, which is the latest blow to Worldcoin's efforts that have raised privacy concerns in several countries.

Worldcoin has been encouraging people to scan their faces through their "orb" devices. In return, they will get free digital IDs and cryptocurrencies. According to the Worldcoin website, more than 4.5 million people in 120 countries have signed up.

Portugal's data regulatory authority, CNPD, said there was a high risk to citizens' data protection rights, which confirmed urgent interventions to prevent serious losses. More than 300,000 people in Portugal have provided their biometric data to Worldcoin, CNPD said.

The regulator said it had received dozens of complaints in the past month about unauthorized data collection of minors, "lack of information given to data subjects," and "possibly unable to delete data or withdraw approval."

Jannick Preiwisch, a data protection officer at the Worldcoin Foundation said that Worldcoin "completely complies with all laws and regulations governing collection and transfer of biometric data."

"The spotlight from CNPD is the first time we've heard from them about many of these issues, including reports on the registration of minors in Portugal, which we don't tolerate and are working on in all cases, even if it's just a few reports," Preiwisch said in an emailed statement.

Worldcoin also said the company in March began a transition to "Personal Guard" that would give users control over their data, including deletion and use in the future.

The CNPD said the order to stop data collection was temporary while conducting additional assessments and analyzing complaints during the investigation.

Privacy Worldcoin says it aims to build an "identity and finance network", which Altman says will be necessary so that people can prove they are human in a world dominated by artificial intelligence. Altman is the CEO of OpenAI and co-founder of the company behind Worldcoin.

Worldcoin is being investigated in various countries and has drawn criticism from privacy advocates for its personal data collection. The privacy campaign group in the UK, Big Brother Watch, said after the launch of Worldcoin that there was a risk biometric data could be hacked or exploited, senior advocacy official Madeleine Stone added that the digital ID system "is detached according to the tremendous benefits that technocrats tend to provide."

Spanish data protection authorities issued a three-month ban on Worldcoin in response to complaints earlier this month. Kenya suspended Worldcoin activities in August.

Bayern state regulatory said they were the main authority investigating Worldcoin under EU data protection regulations because the Tools For Humanity, the company behind Worldcoin, has a subsidiary there.

The suspension of CNPD refers to the Worldcoin Foundation - a entity in the Cayman Islands described on its website as "without members", having no owner or shareholder. The Worldcoin Foundation website says it is the only member and director of a British Virgin Islands company called World Assets Ltd, which is responsible for issuing Worldcoin tokens allocated to people who register.

CNPD said that its decision was addressed to the Worldcoin Foundation because the entity was the data controller for the biometric data.

Worldcoin is backed by some of the most prominent venture capital names, including a16z crypto and Bain Capital Crypto.