Worldcoin Draws Attention from Data Protection Regulators

The week Worldcoin, the crypto project co-founded by ChatGPT founder Sam Altman, launched its WLD token. The controversial crypto digital ID project also drew the attention of data protection regulators.

France’s privacy watchdog, Commission nationale de l’informatique et des libertés (CNIL), initiated investigations into Worldcoin’s biometric data collection practices.

CNIL expressed concerns about the collection of biometric data, particularly Worldcoin’s method of scanning users’ eyeballs for what it calls “privacy-preserving digital identities.” The CNIL stated that the data collection process “seems questionable.”

Earlier this week the UK data regulator, the Information Commissioner’s Office (ICO), also started its own inquiry into the eyeball-scanning orb project. The ICO is focusing on evaluating Worldcoin’s compliance with data protection regulations, especially when processing high-risk biometric data.

Under ICO guidelines, organizations dealing with high-risk biometric data must perform a Data Protection Impact Assessment (DPIA). If the DPIA identifies significant risks that cannot be mitigated, consultation with the ICO becomes mandatory.

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Worldcoin’s website addresses data protection concerns, stating that it never collects any biometric data from users without explicit consent. The project emphasizes that individuals seeking a World ID are not required to share personal information such as their name, phone number, email address, or home address.

The process of generating a World ID involves creating a unique iris code from images collected by the orb. By default, these images are immediately deleted once the iris code is generated, unless the user opts into data custody. Opting into data custody reduces the need for frequent re-verification of the World ID as iris code algorithms change. The primary purpose of the World ID sign-up process is to verify an individual’s uniqueness.