Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the continued extension of Worldcoin operations in Spain until the end of 2024, or until a General Data Protection Regulation (GDPR) compliance audit is done and clears the crypto company in terms of data protection.
Worldcoin Suspension in Spain
On the 4th of June 2024 the Spanish Agency for Data Protection (AEPD) noted that Tools for Humanity Corporation, the company behind Worldcoin, will cease all operations within the Iberian nation until the end of 2024 or when a General Data Protection Regulation (GDPR) compliance audit is completed. An official statement by Worldcoin on their blog noted that they have voluntarily extended the suspension of orb operations in Spain. Within the post they noted that this will allow BayLDA in Bavaria, the competent lead authority responsible for overseeing Worldcoin’s GDPR compliance, to complete their audit.
General Data Protection Regulation, known as GDPR, is a stringent regulation within the European Union relating to data privacy and security. According to the EU's website, it is the toughest privacy and security law in the world. It was drafted and passed by the European Union (EU) but its regulations apply to organisations anywhere in the world as long as they target or collect data related to people in the EU. The regulations came in effect back on the 25th of May 2018, and any breaches of these regulations can see harsh fines imposed against those who violate its privacy and security standards. Penalties can reach into the tens of millions of euros for those found in breach of GDPR.
The suspension of Worldcoin operations in Spain will include the se of Worldcoin orbs, which are devices used to scan users’ irises to create digital identities. The Spanish Data Protection Agency (AEPD) initially ordered the suspension of Worldcoin’s activities back in March 2024 as the project has faced a number of issues and scrutiny from government agencies over concerns related to the protection of personal data.
While the concerns are still an issue, the AEPD has noted that Worldcoin have implemented several privacy and security measures in recent months to address these concerns. Included within these measures are advanced age verification controls, transforming old iris codes into SMPC shares, and offering optional World ID un-verification with the ability to delete iris codes. These steps have demonstrated that the company is fully committed to cooperating and ensuring data protection compliance. Worldcoin have also implemented a measure to prevent people under the age of 18 from signing up.
Bayerische Landesamt für Datenschutzaufsicht (BayLDA), are the data protection authority of Bavaria, Germany, and it is not only Spain and Germany who have raised concerns over Worldcoin. BayLDA is actively moving the investigations forward and is expected to have a conclusion “soon” with a final decision which will be aligned with all concerned European supervisory authorities. On the 22nd of May Hong Kong also ordered the halting of all operations by Worldcoin following a ruling which noted its retention of sensitive biometric data for up to 10 years for training artificial intelligence (AI) models, which included face and iris images, was not justifiable.
While regulators have pushed back hard against Worldcoin, Tools for Humanity Chief Legal Officer Thomas Scott noted:
“In a recent survey of World ID users in Spain, more than 80% of the 21,000 respondents said they believe technologies like World ID are important to distinguish between bots and humans online. Nearly 90% of them support the project’s return to Spain. We voluntarily offered to extend pausing orb operations in the country.”
This survey was conducted via the World App back in May of this year, and according to the statement, more than 21,000 verified users of all genders and socioeconomic backgrounds completed the survey. Worldcoin has been gaining momentum in terms of its user base, with a landmark of 10 million users and 75 million transactions achieved back in April 2024. It also made headlines when a man in Africa used its cryptocurrency to purchase around 13 goats.
The project also announced the launch of its own “human-centric” blockchain network, which will be known as World Chain. This has been designed to prioritise human users and enhance efficiency while also fostering real-world utility in Web3 applications. Worldcoin also noted they are increasing the supply of their token, WLD, by up to 19% over the next six months. Head of product, engineering and design at Worldcoin, Tiago Sada, noted in an interview with Cointelegraph how they plan to keep humans at the centre of the network. Sada noted:
“Usually, the way it works is that every account is fighting for block space. Usually, since bots can move faster and they can outbid humans. The networks get saturated with all the transactions for bots, and humans have whatever is left — many times, they can’t even get in.”
Sada noted that the new blockchain will give verified users a free gas allowance while also aiming to minimise friction for newcomers. The protocol aims for an equilibrium where bots and power users ultimately cover gas fees for casual users, however a sceptical view on this would be that the blockchain and 'free gas' for verified users is merely another tool for targeting people to sign up and scan their iris via the orb. The network will align with Ethereum and also collaborates with projects like Optimism and Base. A full launch is anticipated this summer.
Have a great day.
Peace. CryptoGod-1.
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