Worldcoin faces 90-day suspension in Portugal over data privacy issues

Portugal’s data protection authority, CNPD, has issued a directive to halt Worldcoin’s biometric data collection for a 90-day period. This decision targets the project’s use of “orb” devices to scan individuals’ faces in exchange for a digital ID and cryptocurrency, citing concerns over data protection rights. 

Worldcoin, an initiative co-founded by Sam Altman, CEO of OpenAI, aims to verify human identity on a global scale. Despite its innovative approach, the project has sparked privacy debates, leading to regulatory scrutiny in several countries, including a recent suspension in Spain and ongoing investigations in Kenya and Germany.

The CNPD’s intervention comes after identifying potential risks from the project’s operations, such as unauthorized data collection from minors and issues with data subjects’ consent and information clarity. In response, Worldcoin has emphasized its compliance with legal standards for biometric data handling and introduced a “Personal Custody” feature to enhance users’ control over their data. This feature aims to address some of the privacy concerns by allowing individuals to manage their biometric information directly.

Worldcoin has garnered attention with over 4.5 million registrations across 120 countries, indicating a broad interest in its digital ID and financial network concept. However, the project’s ambitious goal to create a secure, verifiable identity system is now facing significant regulatory challenges. These include the CNPD’s concerns over data protection and privacy, highlighting the balance that innovative technologies must achieve in addressing regulatory standards and public apprehensions about personal data security.