Worldcoin Crypto Project is Under Regulatory Spotlight, Developer Committed To Adhere To Privacy Rules

JAKARTA - Worldcoin, a cryptocurrency project initiated by the CEO of OpenAI, Sam Altman, and his team, has attracted worldwide attention. However, the project that allows transactions with iris scans has received scrutiny from regulators and data supervisors from a number of countries. Regulators are concerned about privacy and the use of biometric data in this project.

The innovative Worldcoin project promises "World ID" technology that functions as a digital passport. Even so, Worldcoin's journey has not been smooth sailing in terms of regulation. The United States has banned its citizens from buying or trading Worldcoin (WLD) tokens, posing a significant challenge to the project.

In Europe, particularly Germany and France, data regulators have been keeping tabs on the project since last year. Uncertainty over the legality of collecting biometric data is at the center of attention in France, while in Germany, data regulators have been carrying out surveillance since November 2022.

A notable incident occurred in Nairobi, Kenya, when police conducted a raid on a Worldcoin warehouse. This comes days after co-founder Alex Blania announced a temporary halt to "World ID" verification in the country. Blania confirmed that "World ID" was actually created to increase privacy.

"World ID is made for privacy," added Blania. "We look forward to continuing operations, while continuing a global rollout."

Worldcoin has been communicating with the Kenya Data Protection Office since April 2022. In an effort to address privacy concerns, the company has clarified that users' personal and biometric data will not be sold or misused. While there is an "Orb scan" which involves scanning the iris of the eye for identification, the company maintains that biometric data will not be used for any other purpose.

Worldcoin Commitment

This scan is performed in three consent options given to individuals. They can choose to disagree, agree to scanning but without data storage, or agree to scanning and data storage. Individuals who agree to the last option will provide consent for their data to be stored and sent to teams in the European Union and the United States.

The Worldcoin Foundation conveys their commitment to maintaining regulatory compliance and data privacy. They stated that the project will continue to collaborate with government agencies and regulators to ensure a safe and secure service for verified users.

With a number of questions regarding privacy and data usage in this project, the crypto market and the global crypto community are still waiting for further developments. In these uncertain conditions, it is important for projects of this kind to find a balance between technological innovation and protection of individual privacy.