Colombia’s consumer protection agency, the Superintendence of Industry and Commerce (SIC), has initiated an investigation into Worldcoin, a biometric cryptocurrency project, and its parent company, Tools for Humanity. The SIC alleges that they breached Colombian personal data protection legislation by gathering biometric data like iris scans without consent.
Worldcoin, co-founded by OpenAI CEO Sam Altman, gives out “World IDs” whenever people use an Orb to SCAN their irises. In return for these scans, users are paid in cryptocurrency specifically in WLD tokens. The project has onboarded over 6.5 million people worldwide. These users include many in Colombia, where it launched operations in June 2023. Presently, Worldcoin has resorted to the use of Orb devices in 25 spaces across seven cities in Colombia including Bogota which is the country’s capital.
According to the SIC, the purpose of the investigation is to establish whether Worldcoin and Tools for Humanity violated Colombian laws on the protection of personal data that is considered sensitive. The agency is especially concerned with the companies’ actions, including the potential lack of consent obtained from users before collecting their iris data and the possible lack of clear policies regarding the treatment and protection of the data.
Colombia Threatens Worldcoin with Fines and Operational Ban
In case of establishing that Worldcoin has wrongfully acted against Colombian law, the SIC may make use of significant sanctions. Fines, ranging from between 100 and 2,000 times the monthly minimum wage, may also involve suspension of operations for a period of between 24 hours and six months or even lasting perpetuity for any activities involving sensitive data. The SIC is also investigating whether Worldcoin offered users enough ways to handle complaints and concerns about their data.
Like most biometric identity systems, Worldcoin’s data collection policies have been criticized in other countries too. Despite the desire to provide users with the possibility of decision-making regarding their data, Worldcoin faced a ban in Hong Kong earlier this year. Ongoing inquiry in Colombia makes the increasing international focus on privacy policies of technology organizations, especially those linked to biometrics more pertinent.
The SIC stressed its appreciation of the fundamental rights of citizens and called on the public to be aware of the protection of their details. The notice of charges is currently under review, and all involved parties have been notified.
