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Worldcoin ordered to delete EU citizens’ iris scan data

Worldcoin, the company that for months collected data from users in exchange for crypto payments, will have to delete all information about the irises of European citizens that it had collected from its systems, something the company claims it did in May.

This was announced by the Bavarian Data Protection Authority (Germany), where the company has its main establishment in the European Union (EU). The countries’ authorities have been investigating the cryptocurrency firm since March 2023. The procedure was initiated at the request of the Spanish Data Protection Agency after finding evidence that the company was violating European regulations by collecting iris information, which is unique to each person. The AEPD then ordered Worldcoin to temporarily cease its activities across Spanish territory.

Thus, the resolution of the Bavarian authority orders the deletion of all iris codes stored since the start of the project and requires changes to the eye photography system if the company wishes to continue operating in the EU. It must modify the terms users accept for consent and include a data deletion system allowing users of the service to request the removal of their information, preventing the company from handling it further.

The decision was coordinated with all European data protection supervisory authorities concerned with the General Data Protection Regulation (GDPR), explained the German authorities. In a similar decision in 2024, the Hong Kong watchdog directed the Worldcoin Foundation to cease all company operations in the country, citing privacy concerns.

Mishandling of minors’ private data

The Bavarian Data Protection Authority will launch another investigation regarding the treatment of minors’ data by the company. In the resolution, the German agency also highlights that Worldcoin did not implement adequate measures to prevent the processing of minors’ data, as it was found that employees of the cryptocurrency company failed to verify users’ ages in any way. This issue will be the subject of a subsequent additional investigation by the German authority.

“With today’s decision, we are enforcing European fundamental rights standards in favor of the data subjects in a technologically demanding and legally highly complex case. All users who have provided Worldcoin with their iris data will in future have the unrestricted opportunity to enforce their right to erasure,” said Michael Will, President of the Bavarian State Office for Data Protection Supervision.

What is Sam Altman’s relation to Worldcoin?

Worldcoin, recently renamed as World, was co-founded by Open AI’s CEO Sam Altman. According to the business, the project surpassed 10 million verified users on the World Network on January 10. Sam Altman says its aim is to create a global identity and financial network akin to India’s Aadhaar biometric ID system, suggesting on its website a variety of ambitious use cases, including distinguishing people from artificial intelligence bots.

The project has been criticized by the MIT Technology Review due to the way it recruits new users, with the site accusing Worldcoin of deceiving users and taking advantage of low-income citizens of poor countries. Users received 10 Worldcoins for registering and scanning their irises. Moreover, a reward of around 80 Worldcoins is given to every user after the first year of being registered (paid bi-weekly). At today’s prices of around US$2 per token, the reward would amount to US$180.

Marc Cervera is a freelance journalist based in Barcelona, Spain, with over four years of experience contributing to leading Spanish and international media outlets. He holds a double degree in Journalism and Political Science from Universitat Abat Oliba and an MA in Political Science from the University of Essex. Marc has lived in the US, UK, Spain, and the Netherlands, and his work primarily explores economics, innovation, and politics.