Millennial Money

Worldcoin faces three-month data collection suspension in Spain, WLD price drops 10%

Spain’s Data Protection Agency (AEPD) has ordered Worldcoin to halt personal data collection and processing and cease using already gathered data within the country for the next three months.

This directive, issued on Mar. 6, addresses several complaints received by the AEPD against Worldcoin, citing inadequate information provision, data collection from minors, and inability to withdraw consent, among other violations.

Why Spain is blocking Worldcoin

The AEPD emphasized the high risks associated with processing biometric data due to its sensitive nature, leading to the decision to implement precautionary measures for immediate cessation of processing activities. This step aims to prevent potential data transfer to third parties and uphold individuals’ fundamental right to personal data protection.

“The Agency considers that the adoption of the urgent measures with the effect of temporarily prohibiting the above-mentioned activities is justified to avoid potentially irreparable damage. The lack of such measures would deprive individuals of the protection to which they are entitled under the GDPR,” the regulator added.

Over the past year, Worldcoin’s project has faced criticism from privacy advocates globally, spanning jurisdictions such as Argentina, Hong Kong, Kenya, the UK, and France. Concerns primarily revolve around how the project collects, stores, and utilizes personal data.

Despite these controversies, over 4 million individuals worldwide have enrolled for iris scanning through its orb devices.

Addressing the concerns, Worldcoin previously stated that it either deletes biometric data or stores it encrypted. The company expressed its commitment to cooperating with regulatory bodies.

WLD price tanks 11%

Following the news, WLD’s price fell 10% to $6.57, according to CryptoSlate’s data.

Over the past month, WLD’s price climbed by almost 200% to a new all-time high of $9.35 as the project enjoyed the positive momentum surrounding its sister company OpenAI’s launch of AI-powered video generation service Sora.

In addition, the crypto project’s price was buoyed by the broader market rally that propelled prices of Bitcoin and other digital assets to new record highs.

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