Germany Investigates Worldcoin Project Due To Sensitive Biometric Data Processing

Orb from Worldcoin. (photo: twitter @worldcoin)

JAKARTA - Since late last year, Germany's data watchdog has been investigating OpenAI CEO Sam Altman's Worldcoin project due to concerns over large-scale sensitive biometric data processing, the regulator's president told Reuters.

Worldcoin, which launched last week, asked users to scan their eye slices as exchanges for digital identity and, in some countries, free cryptocurrence as part of a plan to create new "identity and financial networks".

The Bavarian State Data Protection Supervision Office began an investigation into Worldcoin in November 2022 over concerns that the project is seeking to process "very large-scale sensitive data" using new technologies, Michael Will, president of the country's regulator, said in an emailed comment to Reuters on Friday.

Will said that Bavarian state regulators are the main authority investigating Worldcoin under EU data protection regulations because the Tools For Humanity, the company behind Worldcoin, owns a subsidiary in Germany.

"These technologies at first sight are neither proven nor overly analyzed for the purpose of a special core of processing in the field of financial information transfer," Will said.

This poses a number of risks, including whether users have given explicit consent to their highly sensitive biometric data to be processed based on "sufficient and clear" information, Will said.

Worldcoin has not immediately responded to a request for comment. Their website describes their network as "maintaining privacy" and states that personal data is stored in encrypted form.

The Worldcoin Foundation, a Cayman-based entity, said via email to Reuters last week that it was complying with EU regulations and would continue to work closely with requests for information from government agencies about their privacy and data protection practices.

Since its launch, people have been scanning their faces using scintillating balls at registration sites around the world, including in France, Germany, and Spain. Worldcoin says 2.1 million people have signed up, especially during the trial period over the past two years.

Privacy defenders have long highlighted concerns about the large-scale collection and storage of biometric data, which could increase surveillance or target specific demographic groups.

Several European regulatory authorities consider Worldcoin as a matter of interest to them and have asked for information, added Will.Privacygawas in France told Reuters on Friday, July 28 that Worldcoin's data collection legality "seems doubtful". British data regulators have also stated that they will investigate the project.