Worldcoin, the crypto biometric project led by OpenAI’s Sam Altman, has been temporarily banned in Portugal due to concerns over data privacy.
This ban marks another setback for the controversial initiative, which has faced multiple restrictions globally. Launched in 2023 by Altman, Worldcoin aims to establish a ‘World ID’ for the cryptocurrency market. The project utilizes iris patterns to offer users a private digital identity, addressing issues of pseudonymity and vulnerability to spam bots, scams, and sophisticated deepfakes created using AI.
Despite its ambitions, Worldcoin has been criticized for alleged privacy violations, particularly concerning data collected from children without parental consent. Additionally, there are concerns about the methods used for data capture, storage, and management.
Portugal’s National Data Protection Commission (CNPD) has implemented a three-month temporary ban while conducting an investigation, after which a final decision will be made. The agency stated that this action is aimed at “safeguarding the fundamental right to data protection, particularly for minors.” Currently, over 300,000 users have reportedly provided biometric data in exchange for Worldcoin’s cryptocurrency.
This latest ban comes just three weeks after Spain’s data protection authority imposed a similar restriction on Worldcoin. The company, headquartered in Germany, is also under investigation by the Bavarian State Office for Data Protection Supervision, which is expected to conclude soon with potential significant implications for Worldcoin’s operations within the EU.
In response, Jannick Preiwisch, the data protection officer at the Worldcoin Foundation, emphasized that the project complies with all applicable laws regarding biometric data collection and transfer, including the General Data Protection Regulation (GDPR). He expressed the Foundation’s commitment to transparency and cooperation with the CNPD, noting that the agency’s recent report is the first time they have been alerted to issues such as underage sign-ups in Portugal, which they are addressing with zero tolerance.