Portugal‘s data regulator, the CNPD, has mandated Worldcoin to cease collecting biometric data from citizens for 90 days, following concerns over privacy violations. Worldcoin, initiated by Tools for Humanity (TFH) and supported by the Worldcoin Foundation, offers a digital identity system through cryptocurrency and iris scan technology, aiming to foster a more equitable global economy. Despite claiming over 4.5 million sign-ups in 120 countries and substantial funding, Worldcoin faces scrutiny for allegedly unauthorized data collection, particularly from minors.
The CNPD received numerous complaints, including issues related to the collection of data from minors without proper consent and the inability to erase data or withdraw consent. With an estimated 300,000 Portuguese citizens having provided biometric data, the CNPD perceives a significant risk to data protection rights, necessitating immediate intervention to safeguard citizens’ privacy. Consequently, the regulator’s directive to suspend data collection temporarily will enable thorough analysis of complaints and ensure compliance with data protection laws.
In response, Worldcoin denies any wrongdoing, asserting compliance with relevant regulations governing biometric data collection and transfer. The Worldcoin Foundation’s data protection officer emphasized their commitment to addressing reported issues, including underage sign-ups, and affirmed ongoing efforts to rectify any violations. However, Portugal’s suspension marks another setback for Worldcoin, following a similar ban imposed by Spain’s data protection regulator in March, reinforcing the growing regulatory scrutiny surrounding the project’s data practices.