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Sam Altman’s cryptocurrency project, Worldcoin, faced a massive setback earlier this week as Spain took steps to block the eye-scanning crypto over fears of the depth and breadth of data it would collect.
Sam Altman’s cryptocurrency initiative has been embroiled in several controversies across the world due to its plans to gather users’ data using an eyeball-scanning device known as the “orb.”
The Spanish data protection regulator, AEPD, has issued an order for Worldcoin to cease the collection of personal information within the country immediately and to stop using any data it has already acquired.
The AEPD is expected to announce this “precautionary measure” soon. It will also be granting Worldcoin a 72-hour window to demonstrate compliance with the order, as per a report by The Financial Times.
Last year, the AEPD raised concerns regarding the involvement of minors in the technology, prompting Worldcoin to implement new age verification procedures. Worldcoin, founded by Altman in 2019, incentivizes individuals globally with tokens of its cryptocurrency in exchange for consenting to undergo eye scans by the orb.
These scans serve as a means of identification, aiming to establish a reliable method of distinguishing between humans and machines, particularly as artificial intelligence advancements continue.
The Spanish regulator’s decision represents another setback for Altman and Worldcoin co-founders Max Novendstern and Alex Blania, who have faced challenges in various parts of the world. Last summer, the startup, headquartered in San Francisco and Berlin, opted against launching its crypto tokens in the United States due to the country’s stringent crackdown on the digital asset sector.
Worldcoin’s token remains unavailable in some of the biggest crypto markets in the world, including China and India. Other countries, like Kenya, have ordered the project to cease operations last year.
The UK’s Information Commissioner’s Office has also announced its intention to investigate Worldcoin. While some jurisdictions have questioned the feasibility of the Worldcoin token, Spain’s recent crackdown specifically targets the startup’s primary objective of establishing a means to verify customers’ “personhood”—a crucial endeavor, according to Altman, in a world where distinguishing sophisticated AI from humans poses challenges.
Amid mounting scrutiny, Altman expressed his willingness to consider the possibility of Worldcoin existing without its native cryptocurrency. According to sources familiar with the matter, Worldcoin has amassed 4 million users, with approximately $250 million in investments from notable backers, including venture capital firms Andreessen Horowitz and Khosla Ventures, internet entrepreneur Reid Hoffman, and, before the collapse of his FTX venture, Sam Bankman-Fried.
The project’s visibility has sparked media interest and led to several consumer complaints in Spain, particularly as queues formed at Worldcoin stands in shopping centers offering cryptocurrency in exchange for eye scans.
In January, the data protection authority in the Basque country issued a warning regarding the eye-scanning technology employed by Worldcoin at a mall in Bilbao, asserting that it falls under biometric data protection regulations and necessitates a risk assessment.
