Bavarian Data Watchdog Addresses Worldcoin’s Negative Headlines
According to incoming market reports, Bavaria’s data watchdog had not concluded its evaluation of Worldcoin’s privacy and security before the launch of the project, the agency’s head stated.
Bavaria is a German state in which Worldcoin (WLD) has established a data administration entity for its European users; therefore, the local authority is in charge of the investigation.
Worldcoin is subject to severe criticism
Sam Altman, the entrepreneur behind the popular chatbot ChatGPT, co-founded WLD, which seeks to promote a new method using iris scans, artificial intelligence, and zero-knowledge proofs to verify that an internet user is human and unique. Users who have been verified can receive Worldcoin token grants.
On top of this identification protocol, developers can build applications, such as a wallet, for distributing WLD tokens.
Michael Will, president of Bavaria’s Data Protection Authority, the European agency responsible for overseeing the OpenAI-related project, told reporters on Monday that the agency was still reviewing the project on July 24, even though the company was not required by law to notify the authorities and obtain their approval before the launch.
Simultaneously, the financial aspect of Worldcoin is under investigation. BaFin, Germany’s Federal Financial Supervisory Authority, is investigating the initiative.
A BaFin representative told the local newspaper Tagesspiegel that it is uncertain whether the organization requires a license from the regulator, as do other cryptocurrency businesses.
Even before the project’s official introduction, controversy surrounded it. Criticism has centered on potential privacy concerns, the alleged manipulation of people in developing nations, and the fact that a private company is establishing a global identification infrastructure, which has historically been the responsibility of government institutions.
The Worldcoin investigation information
The Bavarian DPA’s involvement with Worldcoin began in November 2017 when its French counterpart requested information on whether the project had a Bavarian data controller, the entity that decides how and why data is processed under GDPR and is ultimately liable for the processing.
Worldcoin responded to the DPA’s request for information in March and also submitted a GDPR-mandated privacy impact assessment for companies that process sensitive data such as biometric information.
Notably, the Bavarian DPA concluded based on this information that the local Worldcoin entity complied with GDPR requirements but had additional concerns.
Authorities in France and the United Kingdom, as well as the Bavarian DPA, have stated that they are investigating the project.
In addition, Kenyan authorities have suspended Worldcoin operations, citing concerns regarding privacy, security, and financial regulation.
In addition, European data authorities are presently investigating the data flows of Worldcoin, the pseudonymization of personal data such as biometric iris scans, and the transparency and impartiality surrounding user consent.
Worldcoin is expected to respond to the authorities’ most recent request for information by September, at which time the investigation may delve deeper into the cryptocurrency’s technology.
Kenyan Police execute a search warrant at a Worldcoin warehouse in Nairobi
Local news agencies reported on Monday that Kenyan police raided and seized documents and devices from the Nairobi warehouse of Worldcoin on Saturday.
According to media reports, the commissioner of Kenya’s Office of Data Protection, Immaculate Kassait, stated that Tools for Humanity, the parent company of Worldcoin, neglected to disclose its true intentions when registering in Kenya.
A police team carried Worldcoin data to the headquarters of the Directorate of Criminal Investigations for analysis, according to reports.
In exchange for being scanned, users could receive Worldcoin token airdrops following the project’s July launch. It is currently encountering difficulties in Kenya.
“The officers, backed by multi-agency officials, went to the offices on Mombasa Road armed with a search warrant on Saturday and broke in before fleeing with what they believe to be machines containing the company’s data.”
Local Newspaper
Despite Kenya’s minister for the digital economy, Eliud Owalo, stating that the ODPC has been in contact with Worldcoin since April and has determined that its activities comply with Kenya’s data-protection laws, the Ministry of the Interior suspended the project’s operations in the country one week ago.
ALSO READ: Unnoticed Worldcoin Terms Kenyans Missed
Later in the week, however, the ODPC issued a statement indicating that, following an initial assessment, it had identified “several legitimate regulatory concerns” regarding the proposal. Additionally, British, French, and German authorities are investigating the initiative.
Numerous members of the crypto community have accused the projects’ creators of attempting to persuade governments through data collection. According to reports, the founders of WLD intend to exchange information with government entities to continue operating in countries.
But how secure is this endeavor for the general public? Are we observing an entity that created an AI problem and is now poised to provide a solution for the same problem it created? Who is responsible for safeguarding ordinary crypto investors and citizens in developing nations like Kenya?
Bavarian Data Watchdog Addresses Worldcoin’s Negative Headlines
