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Despite these violations, the PIPC did not ban Worldcoin’s data collection practices.
Key Notes
Worldcoin and Tools For Humanity were fined $830K by South Korea for mishandling biometric data.Violations include failing to inform users properly and not offering a data deletion option.Despite the fine, Worldcoin continues expanding globally, adding new verification features.South Korea’s Personal Information Protection Commission (PIPC) has fined Worldcoin and its parent company Tools For Humanity (TFH) 1.1 billion Korean won ($830,000) for violating the country’s data privacy laws. The fine is due to Worldcoin’s poor handling of personal data, especially in collecting and sharing biometric information like iris scans.
The PIPC found that Worldcoin did not adequately inform users about the purpose or duration of storing their biometric data. In addition, before March 22, the project failed to provide a Korean translation of its consent form for biometric data collection, breaching local regulations.
Violations and Fines
Worldcoin, which creates digital “World IDs” based on iris scans to verify users, was fined 725 million won ($545,000) for improper handling of sensitive personal data and transferring it overseas without adequate disclosure. TFH, the company behind Worldcoin, was fined 379 million won ($285,133) for failing to comply with data transfer protocols.
Regulators noted that Worldcoin and TFH did not inform users about where their data was being sent or provide contact details for the recipients, as required by South Korean law. Worldcoin also failed to offer users an option to request the deletion of their iris data.
Investigation Outcome and Worldcoin’s Response
Despite these violations, the PIPC did not ban Worldcoin’s data collection practices. The commission said Worldcoin could continue to operate in South Korea if it addresses the issues. The investigation, which began in February 2023, is now concluded, with Worldcoin expected to comply with local privacy regulations.
Following the ruling, TFH stated that it “welcomes” the PIPC’s decision. The company acknowledged that the investigation revealed shortcomings in its initial privacy disclosures in South Korea but noted these have been rectified.
“The PIPC’s investigation, which identified weaknesses in the original disclosures provided by TFH when it initially launched in South Korea and which have since been remedied, effectively concludes that TFH’s operations, including the use of the orb for humanness verification, are in compliance with South Korea’s Personal Information Protection Act,” the company said in a press release.
Continued Global Expansion
Worldcoin, a project by TFH co-founded by OpenAI CEO Sam Altman and Alex Blania, aims to create a global digital identity system using biometric data to protect against risks from artificial intelligence. The project has over 6.7 million verified World IDs around the world, offering users WLD cryptocurrency in exchange for participating in iris scans through an Orb device.
Despite legal troubles in several jurisdictions, Worldcoin continues to expand globally. Recently, the project launched World ID verification in Guatemala, Malaysia, and Poland, expanding its reach to over 160 countries. Earlier this month, the company also introduced Face Auth, a new feature that enables users to verify their identity through a private 1:1 face comparison.
Worldcoin’s native cryptocurrency WLD WLD $2.09 24h volatility: 15.3% Market cap: $995.56 M Vol. 24h: $800.91 M saw a 17% price increase in the last 24 hours, making it one of the top gainers among the top 100 coins.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Leon is a seasoned blockchain writer and reporter, dedicated to uncovering the stories behind decentralized technologies. He excels in providing in-depth analysis and thought leadership in blockchain media. His reporting sparks meaningful conversations and fosters a deeper understanding of the transformative potential of blockchain.
