Colombian regulators investigating Worldcoin over privacy concerns

Colombia’s Superintendence of Industry and Commerce (SIC) has launched an investigation into Worldcoin and its parent company, Tools for Humanity. The SIC alleges that both firms have violated the nation’s data protection regime. 

Worldcoin has come under the scrutiny of Columbian regulators. The primary motive of the charges, according to the SIC, is to confirm whether the firms have collected sensitive personal data in connection with the implementation of data processing policies.

Worldcoin launched its Colombian operation in June 2024 

Worldcoin made its debut in Colombia in June 2024. Since then, Sam Altman’s company has placed orb devices in various cities for verification, including in the capital of Bogota. The primary concern regarding scrutiny is to identify the handling of sensitive information like iris scans.

#ATENCIÓN🚨| La SIC formuló pliego de cargos contra WORLDCOIN FOUNDATION y TOOLS FOR HUMANITY CORPORATION por presuntas infracciones al régimen de protección de datos personales. pic.twitter.com/C0Z3XHpik8

— Superintendencia de Industria y Comercio 🇨🇴 (@sicsuper) August 21, 2024

The SIC statement stated, “In the event that the alleged conduct by the investigated parties is proven, the Superintendence may impose the sanctions contemplated in Article 23 of Law 1581 of 2012.”

If the SIC finds evidence of misconduct by the company, it may impose a penalty on the company, including ordering a substantial fine, temporary closure of operations, suspension of activities related to data processing, or even the immediate and permanent closure of operations in Colombia.

Worldcoin has faced scrutiny since its launch in July 2023

Worldcoin was co-founded by Sam Altman in July 2023, who is also the founder of ChatGPT. However, the firm has been under the scrutiny of regulators in various nations for its iris data collection.

Argentina’s data regulator, AAIP, had launched an investigation into Worldcoin’s data practices as to how the data is collected and safeguarded. The United Kingdom also announced that it would investigate the firm.

France’s CNIL also raised questions about the legality of the firm’s biometric data collection. Kenya went a step ahead and suspended the firm’s operations, citing concerns about data protection. The World ID issuer also faced scrutiny from Portugal, where the country placed a three-month ban on its operations citing reports of minors’ data collection without the consent of parents.

Despite the backlash from various nations, the firm has World ID users spanning over 160 countries. World ID verifications have also crossed 6.5 million as per their website data.