Spain’s regulator has ordered Worldcoin to stop collecting data in the country. WLD exchange rate fell by 17%

What’s new? The Spanish Data Protection Agency (AEPD) has ordered the Worldcoin team to immediately stop collecting personal data of the country’s residents, as well as using the information already obtained. Users can join the Worldcoin blockchain network after undergoing a retinal scan using the Orb device. The retinal scan is unique to each person, just like a fingerprint, which is why regulators in many countries have become interested in Worldcoin’s activities to collect citizens’ personal data.

Material by FT

What else is known? AEPD was particularly concerned that Worldcoin collects the data of minors. Officials also said that this problem affects citizens in all EU countries, so “co-ordinated action” should be taken against the project.

Back in January, the Data Protection Service of Spain’s autonomous Basque Country community issued a warning about Worldcoin’s retinal scanning technology. Officials said that a risk assessment of the project’s activities, which should be regulated by the Biometric Data Protection Act, was necessary.

The AEPD explained that Worldcoin’s actions probably do not meet the norms of this law, which is why the ban was issued. Thus, according to the document, users must be informed in detail about how their data will be used. They should also be able to delete this data.

Providing biometric data carries risks of fraud and privacy violations, officials explained. “I want to send a message to young people. I understand that it can be very tempting to get €70 or €80 that sorts you out for the weekend,” but “giving away personal data in exchange for these derisory amounts of money is a short, medium and long-term risk,” concluded España Martí, head of the authority.

Against the backdrop of the Spanish authorities’ decision, the WLD exchange rate collapsed by 17% overnight to $6,09, but has partially recovered to $6,6 at the time of writing. The asset ranks 111th in the ranking of cryptocurrencies by market capitalization with a value of over $976 million.

After passing the identification procedure, Worldcoin users receive a kind of digital passport using the WorldID protocol, as well as 25 native tokens WLD as a gift. The creators of the project note that retinal scanning, acting as a form of identification, is aimed at creating a mechanism for distinguishing between people and bots in the era of the development of artificial intelligence.

Earlier claims to the project in connection with the collection of biometric data were made by the regulators of the UK, Germany, and France. Kenya’s parliament last October recommended stopping Worldcoin from operating in the country.

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In December, Worldcoin stopped offering the verification service in India, France, and Brazil.

In early March, South Korean authorities also launched an investigation into Worldcoin’s activities and said they were ready to take enforcement action if they found violations of local laws.