Worldcoin Faces Legal Scrutiny Over Iris Data Collection, French Privacy Watchdog Investigates

Picture Source: BeInCrypto

Worldcoin, a controversial project launched by OpenAI, the parent company of the renowned AI chatbot ChatGPT, has recently come under scrutiny from global regulators. The French privacy watchdog, the Commission Nationale Informatique & Libertés (CNIL), has raised questions about the legality of Worldcoin’s iris data collection practices, adding to the growing concerns surrounding the project’s tokenomics and privacy aspects. This article delves into the details of the CNIL’s investigation, the response from Worldcoin, and the broader implications for the cryptocurrency.

The CNIL’s Probe into Worldcoin’s Biometric Data Collection

The CNIL has initiated a formal probe into Worldcoin’s biometric data collection, specifically focusing on the project’s practice of conducting iris scans. According to a report by Reuters, the French privacy watchdog expressed doubts about the legality of the data collection process and raised concerns about the conditions under which biometric data is stored. The investigation comes in response to the controversial initiative of setting up physical iris-scanning booths worldwide, where participants are rewarded with the project’s native crypto token, WLD.

Worldcoin’s Response and Clarifications

In light of the mounting controversy, the Worldcoin team has attempted to address some of the concerns by clarifying its data collection methods. The team stated that they store only the unique iris patterns and not the raw iris images. However, despite this explanation, the CNIL and other regulatory bodies remain unconvinced and continue to examine the project’s data practices closely.

Global Regulatory Scrutiny

The French privacy watchdog CNIL is not the only regulatory authority investigating Worldcoin’s activities. The UK Information Commissioner’s Office has also expressed its intention to inquire further into the project’s data collection and privacy policies. This heightened regulatory scrutiny could have significant implications for Worldcoin’s operations and may prompt other regulatory bodies worldwide to closely evaluate the project’s compliance with privacy laws and data protection regulations.

Worldcoin’s Token Performance

Aside from the regulatory challenges, Worldcoin is facing notable volatility in its native crypto token, WLD. As of the time of writing, WLD is trading at $2.17, reflecting a decline of approximately 0.41% over the past 24 hours. However, data from TradingView indicates that the token has experienced a more substantial drop of about 35% from its all-time high of $3.30

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The Worldcoin project, an initiative by OpenAI to distribute its native crypto token through physical iris-scanning booths, is now grappling with legal and regulatory challenges. The French privacy watchdog CNIL’s investigation into the legality and conditions of the project’s biometric data collection is just one facet of the growing concerns surrounding Worldcoin’s tokenomics and privacy aspects. With other regulatory bodies also expressing interest in the project, Worldcoin’s future remains uncertain. The outcome of these investigations will likely influence the development of similar cryptocurrency initiatives and raise questions about the balance between technological innovation and data privacy in the digital age.