Colombia’s watchdog, the Superintendence of Industry and Commerce (SIC), has launched an investigation into the decentralized identity project Worldcoin, backed by Tools for Humanity. The project is accused of violating Colombia’s data protection laws.
Case in Colombia
Worldcoin has deployed its Orb devices in 25 locations across Colombia, including the capital city Bogota, Medellin, Cartagena, and Barranquilla. The SIC's main concern is whether Worldcoin and Tools for Humanity are adhering to Colombia’s personal data protection rules, particularly regarding the collection and processing of sensitive information. If found guilty of breaching data protection laws, Worldcoin could face severe consequences. The SIC has the authority to impose economic sanctions on the project and may also shut down its operations in Colombia for six months or permanently.
Issues in Other Countries
Colombia isn’t the first country to scrutinize Worldcoin’s activities. In July 2023, the Kenyan government halted Worldcoin’s operations due to data protection concerns. Kenyan authorities were worried about how Worldcoin was handling the biometric data collected from over a million users. Earlier this year, Spain also took action against Worldcoin. The Spanish Data Protection Agency (AEPD) temporarily banned the project and demanded explanations regarding its biometric data handling processes. Argentina has also raised concerns about Worldcoin’s practices. Although no official ban has been imposed, critics argue that Worldcoin is exploiting vulnerable populations and are calling for government intervention to protect citizens from potential data misuse.
Implications for Worldcoin
If the allegations are proven true, the repercussions for Worldcoin could be significant. Economic sanctions and temporary or permanent shutdowns in multiple countries could severely affect the project's reputation and financial health.
The situation surrounding Worldcoin is still developing, and the outcome of the Colombian watchdog’s investigation could have a substantial impact on the project’s future and its interactions with regulators worldwide.
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