German data watchdog investigates Worldcoin crypto project, official says.
German data watchdog investigates Worldcoin crypto project, official says.
German Data Watchdog Investigates OpenAI CEO’s Worldcoin Project Over Biometric Data Concerns
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In a recent development, the Bavarian State Office for Data Protection Supervision – a German data watchdog – has been conducting an investigation into OpenAI CEO Sam Altman’s Worldcoin project since late last year. The investigation was initiated due to concerns raised over the large-scale processing of sensitive biometric data by Worldcoin. Michael Will, the president of the Bavarian State Office, shared insights on this matter during an interview with ANBLE, shedding light on the potential risks associated with Worldcoin’s operations.
Worldcoin, which was launched last week, introduced a unique proposition where users are required to provide their iris scans in exchange for a digital ID and, in some countries, free cryptocurrency. The project aims to establish an innovative “identity and financial network”. However, the ambitious nature of Worldcoin’s data processing has attracted regulatory attention. Will mentioned that the investigation was triggered because the project seemed to seek large-scale processing of sensitive data using new technologies, which raises questions about its legality and potential risks.
The Bavarian State Office has taken the lead in investigating Worldcoin, given that Tools For Humanity, the company behind the project, has a German subsidiary. Will expressed concerns about the use of these new technologies for processing financial information, stating that their impact and potential risks are yet to be fully analyzed. This uncertainty poses challenges, particularly in terms of whether users have provided explicit consent for their highly-sensitive biometric data to be processed and whether they have been provided with sufficient and clear information regarding the purpose and implications of this processing.
Worldcoin has not yet responded to requests for comment regarding the investigation. The project’s website claims that its network is “privacy-preserving” and personal data is stored in encrypted form. However, several concerns have been raised by privacy campaigners regarding the mass collection and storage of biometric data, as this could potentially lead to increased surveillance and targeting of specific demographic groups.
Will also highlighted that other European supervisory authorities have shown interest in Worldcoin and have requested information regarding its data protection practices. France’s privacy watchdog, for example, stated that the legality of Worldcoin’s data collection “seems questionable”. Similarly, Britain’s data regulator announced its intention to make inquiries into the project’s operations.
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It is worth noting that since the project’s launch, Worldcoin has implemented sign-up sites around the world, including in France, Germany, and Spain. At these sites, people have been getting their faces scanned by a shiny spherical “orb”. Worldcoin reported that 2.1 million individuals have already signed up, mostly during a two-year trial period.
The investigation into Worldcoin by the German data watchdog emphasizes the significance of scrutinizing the processing of sensitive data, especially on such a large scale. As innovative technologies continue to advance, ensuring the protection of user privacy and consent will remain crucial for maintaining trust and compliance with data protection regulations.
