The Spanish Data Protection Agency (AEPD) has ordered Worldcoin to stop the collection and processing of personal data and to stop using data already collected in the country for the next three months.
This directive, issued on March 6, addresses several complaints the AEPD has received against Worldcoin, including inadequate information provision, data collection from minors and the inability to withdraw consent.
Why Spain blocks Worldcoin
The AEPD highlighted the high risks associated with the processing of biometric data due to its sensitive nature, leading to the decision to take precautionary measures for the immediate cessation of processing activities. This step is intended to prevent possible data transfer to third parties and uphold the fundamental right of individuals to protection of personal data.
“The Agency is of the opinion that the adoption of the urgent measures resulting in a temporary ban on the above activities is justified in order to prevent potentially irreparable damage. The absence of such measures would deprive individuals of the protections they are entitled to under the GDPR,” the regulator added.
Over the past year, Worldcoin’s project has faced criticism from privacy advocates around the world, in jurisdictions including Argentina, Hong Kong, Kenya, Britain and France. The concerns mainly revolve around the way the project collects, stores and uses personal data.
Despite these controversies, more than 4 million people worldwide have signed up for iris scanning through Orb devices.
To address concerns, Worldcoin previously stated that it deletes biometric data or stores it encrypted. The company expressed its commitment to cooperate with regulatory authorities.
WLD price tanks 11%
Following the news, WLD’s price fell 10% to $6.57, according to Crypto Slates facts.
Over the past month, WLD’s price rose nearly 200% to a new all-time high of $9.35, as the project enjoyed positive momentum surrounding sister company OpenAI’s launch of AI-powered video generation service Sora.
Furthermore, the crypto project’s price was boosted by the broader market rally that drove the prices of Bitcoin and other digital assets to new all-time highs.