Worldcoin’s Global ID Dream Hits Regulatory Brick Wall—What’s Really Going On?

Sam Altman’s crypto-powered identity project, Worldcoin, pitched itself as the passport to a borderless digital future. But governments aren’t buying it—literally or figuratively.

From Kenya to Germany, regulators are slamming the door on Worldcoin’s iris-scanning orbs, citing everything from privacy violations to outright bans. Turns out, ‘global adoption’ gets tricky when you skip the ‘asking permission’ part.

Meanwhile, crypto traders shrug: another day, another project learning the hard way that compliance isn’t just a buzzword. But hey, at least the token’s volatility gives degens something to gamble on.

Privacy groups slam Worldcoin over biometric risks and exploitation

Tech experts and privacy groups warned that the biometric data from these eye scans is extremely sensitive because the information connects directly to who you are as a person. And since you can’t change your eyes like your password, a hacker could easily stalk or steal from you. 

The Electronic Frontier Foundation (EFF) also criticized the project by saying the company rushed to collect information from third-world countries because the people were unaware of how Worldcoin would use, protect, or delete their data. 

In addition, people raised concerns about consent because Worldcoin would sometimes target individuals with limited internet access or education since they are less likely to understand the risks and make a more informed decision. Some users even claimed they only registered for Worldcoin for the free cryptocurrency but did not know how the company would use their data.

Worldcoin also faced scrutiny over transparency, as it failed to clearly explain how user data was stored, who had access to it, and what would happen if the company changed ownership or shut down.

Although Worldcoin claimed to anonymize the data, experts pointed out that it could still be traced back to the individual with the right tools. Once a scan is in the company’s database, it could remain there indefinitely.

Due to mounting concerns, various governments launched investigations into Worldcoin’s practices. Nations like Spain, Portugal, and Kenya are at the forefront of demanding Worldcoin cease operations in their regions.  These actions prove that many governments globally are moving too fast, breaking several legislative laws that seek to protect user interests.

Worldcoin tries to win back trust after bans

Due to the government pushback, Worldcoin quickly tried to save its image and respond to the growing criticism by sharing the code behind its Orb scanning device to help people understand how it worked and prove that it wasn’t secretly collecting more data than it claimed. 

Furthermore, the company introduced “Personal Custody” to allow users to control their data by storing it themselves or deleting it from the database. Moreover, Worldcoin brought in independent experts to perform third-party audits to ascertain that the company’s technology and policies aligned with the regulations the way Worldcoin claimed. 

Despite these efforts, legal and tech experts still have mixed opinions because some say it was the first step toward making things right, while others claim that these efforts were not enough and that the company still has big problems to solve.

Therefore, even after all the changes Worldcoin has made, the gap between what the company claims and what regulators believe remains wide because regulators say the company still needs to explain, fix, and prove more before the uplift bans. 

The Indonesian Ministry of Communication and Digital (Komdigi) plans to summon the developers of Worldcoin and WorldID next week. This action follows the temporary suspension of the platforms that collect users’ iris data for alleged regulatory violations.

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