UK, France, and Germany Take Stringent Measures Against Worldcoin’s Practices
As of August 7, 2023, a new World ID user is being verified approximately every eight seconds, as disclosed by Sam Altman, co-founder of Worldcoin.
Although its initial launch was uninspiring, the proposition of receiving WLD tokens—a form of digital currency—in exchange for an iris scan has gained significant traction. Consequently, a rising number of governments are raising apprehensions.
In the United Kingdom, the Information Commissioner’s Office has initiated an inquiry into WorldCoin’s data management and processing methods.According to the statement released by the U.K. watchdog, organizations are obligated to perform a Data Protection Impact Assessment (DPIA) prior to commencing any high-risk processing activities, including the processing of specialized category biometric data.
“We have taken note of WorldCoin’s introduction in the UK and will be launching an investigation,” the statement reads.Meanwhile, in Germany, the Bavarian State Office for Data Protection (BayLDA) commenced an investigation into Worldcoin in November 2022.
The primary concerns are centered around the data collection processes, especially in relation to biometric data. Michael Will, the President of BayLDA, voiced reservations about the technology, deeming it neither “established nor well analyzed,” which could potentially put users at risk.France, too, has expressed its reservations.
The National Commission of Informatics and Liberty has questioned Worldcoin’s data collection methods from a legal standpoint. It conveyed its doubts regarding the legality of the data collection and the terms under which biometric data is stored in an email to Reuters.The core issue underlying these concerns revolves around Worldcoin’s apparent collection of sensitive biometric data from citizens, taking place without requisite authorization from relevant national authorities.
This disregard for regulations pertaining to data collection, processing, and safeguarding has triggered a response from the U.K., France, and Germany, which is likely to set a precedent for other nations examining Worldcoin’s activities closely.
Worldcoin, in response, asserts that the collected biometric data is stored on a decentralized blockchain. It employs zero-knowledge proofs within the World ID system to authenticate human users without divulging the actual data.The rationale behind this approach is what Sam Altman terms “Proof of Personhood.” In an era where distinguishing between humans and bots is increasingly challenging, Worldcoin’s system aims to facilitate verification of genuine human interactions.
Altman’s familiarity with AI-associated risks is underscored by his position as the CEO of OpenAI, the organization behind the widely used chatbot, ChatGPT.Under the World ID system, users receive WLD tokens upon scanning their irises using an Orb. These devices are situated in over 70 locations worldwide. Once the verification process is completed, users gain access to their tokens and can utilize the World App wallet along with its associated financial services.
While governments have criticized Worldcoin, privacy advocates, cybersecurity experts, and others have also raised concerns. The MIT Technology Review, for instance, accused Worldcoin of employing “deceptive marketing practices,” asserting that the platform accumulates more personal data than it openly acknowledges, and criticizes its failure to secure meaningful consent.
Having secured $115 million in funding in May, Worldcoin appears to follow the trend of Silicon Valley-backed tech companies intent on amassing private data with scant regard for international laws and regulations. However, Bitcoin’s recent trajectory seems poised to empower individuals by restoring control over their data.
