Problems facing Worldcoin, a cryptocurrency project led by Sam Altman another setback As Spain takes steps to block the venture. Spain’s data protection regulator, AEPD, ordered Worldcoin to immediately stop collecting personal data in the country and stop using data it has already collected.
Concerns About Worldcoin Eye Scan Data Collection
According to the Financial Times report, AEPD expressed concerns about the project’s use of eye-scanning “spheres” to collect customer data. Regulators are expected to announce “precautionary measures” on Wednesday and Worldcoin has been given 72 hours to demonstrate compliance with the order.
Worldcoin, co-founded by Altman in 2019, offered cryptocurrency tokens to individuals around the world in exchange for their consent to have their eyes scanned with spheres. Scanning is used as a means of identification, and as artificial intelligence advances, the goal is to build a reliable mechanism to distinguish between humans and machines.
But the Spanish regulator’s action adds to a series of setbacks faced by Altman and his co-founders Max Novendstern and Alex Blania, who have encountered resistance in various countries.
Last year, World Coin faced opposition from Kenyan authorities and received the following order: cease business. The project also refrained from launching cryptocurrency tokens in the United States due to the country’s strict regulations on digital assets.
The report also notes that major global markets such as China and India have also made Worldcoin tokens unusable. The UK’s Information Commissioner’s Office has also expressed its intention to investigate Worldcoin.
Consumer complaints in Spain
While some jurisdictions have questioned the viability of Worldcoin’s cryptocurrency tokens, Spain’s latest move specifically targets the project’s core goal of establishing a way to verify the “personhood” of customers. Altman acknowledged the possibility of Worldcoin existing without an in-house cryptocurrency as the startup faces increasing scrutiny.
Worldcoin reportedly has around 4 million registered users and is supported by venture capital firms such as Andreessen Horowitz and Khosla Ventures, as well as Reid Hoffman and Sam Bankman-Fried.
The project attracted media attention and sparked consumer complaints in Spain. This was especially true as lines formed at shopping center kiosks where Worldcoin offered cryptocurrency in exchange for eye scans.
In January, Spain’s Basque Country data protection watchdog, known as AVPD, warned about eye screening technology used by Worldcoin at a shopping mall in Bilbao.
The AVPD considered the biometric data protection regulations to be applicable and required a risk assessment. Due to Spain’s regulatory measures, WorldCoin’s native token, WLD, has experienced a 7% drop over the past 24 hours.
WLD halts 200% price surge
Worldcoin’s native token, WLD, recently halted its 200% uptrend over the past 30 days as focus shifted to Bitcoin (BTC), which hit a new all-time high (ATH) on Tuesday. Despite a significant upward trend over the past month, WLD has experienced a price correction of 5.8% over the past 7 days.
In addition, the token market capitalization It fell below $1 billion and now stands at $997 million. however, A.I The (AI) technology developed in Sam Altman’s project has the potential to have a significant impact on token prices in the future.
Despite the 26% decline from ATH of $9.44, continued technological advancements in the field indicate that the token’s prospects remain promising.
Going forward, it remains to be seen how the project’s founders will respond to the regulatory measures taken in Spain, and how these measures will ultimately impact the token’s future price trajectory.
Featured image from Shutterstock, chart from TradingView.com
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