German Regulators Crack Down on Worldcoin Data Practices

Worldcoin, the biometric digital identity project co-founded by OpenAI CEO Sam Altman, is under scrutiny in Germany for handling sensitive data. 

The Bavarian State Office for Data Protection Supervision (BayLDA) has ordered Worldcoin to align its practices with the European Union’s General Data Protection Regulation (GDPR).

What Prompted the Investigation?

Worldcoin, now Known as World, was launched in July 2023. It uses iris scans to verify digital identities. However, the company’s operations sparked significant privacy concerns. 

German regulator, BayLDA, began investigating the project in 2023, citing potential violations of GDPR. As a precaution, World voluntarily paused operations in several EU countries during the probe.

No one is surprised

Worldcoin has been sanctioned by the Germans

Mandated to delete the biometric data they stored illegally

You know, THE LAW

Beat the bots in a scalable way
Proof of Humanity, ID & reputation
for every jurisdiction where you operate

call @PrivadoID pic.twitter.com/wAfq1XhgNb

— evin (@provenauthority) December 19, 2024

BayLDA’s investigations into Worldcoin revealed significant lapses, particularly the company’s data collection method at its early stage. The German authority claimed there was no legal basis for some of the records taken in 2023. As a result, BayLDA mandated Worldcoin to delete such records and implement a GDPR-compliant deletion protocol within one month.

A Push for Clarity on Data Anonymization

Worldcoin has appealed the ruling. Furthermore, the World Foundation is seeking clarity on whether its Privacy Enhancing Technologies (PETs) meet the EU’s standards for anonymization. According to the foundation, current GDPR lack a clear definition of anonymization, a tool it believes is important in protecting personal data in the AI-driven era.

Damien Kieran, chief legal and privacy officer of World founder, Tool For Humanity (TFH), emphasized the importance of anonymization. He said in a blog post,  “Data anonymization, not just data deletion, is essential for enabling people to verify themselves as human online while remaining completely private.” 

President of the data agency probing @worldcoin the past two years also told me there’s another investigation into complaints that minors had their eyes scanned.

Meanwhile, the project is still planning to expand throughout the EU. https://t.co/DdEIS2ACdj

— Liam J. Kelly (@Liam_Gallas) December 19, 2024

Strengthening User Rights

BayLDA president Michael Will highlighted that the decision enforces EU fundamental rights. Will believes the move paves the way for users to request the erasure of their biometric data from the Worldcoin’s records. Moving forward, authorities will require Worldcoin to comply with the stipulated measures. 

Worldcoin’s European future depends heavily on its ability to address its privacy concerns and build trust around its operations.

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