Spain Imposes Three-Month Ban on Worldcoin Over Privacy Issues
In a recent development, the Spanish data protection agency (AEPD) has ordered Tools for Humanity Corporation, the developer behind the innovative digital ID and free cryptocurrency project Worldcoin, to halt data collection and usage. This decision comes amidst growing regulatory concerns about biometric data processing risks in cryptocurrency projects.
The ban in Spain follows similar actions by other jurisdictions, such as South Korea, the UK, Hong Kong, and Kenya, where Worldcoin faces significant regulatory challenges. The project, co-founded by Sam Altman, has been under investigation in these regions due to concerns about privacy compliance and navigating global investigations.
Worldcoin's expansion plans in the UK, where it officially launched in London in June 2025, are facing significant hurdles regarding privacy compliance. The UK's strict data protection laws, similar to the GDPR, are posing challenges, particularly in handling biometric data from iris scans. Regulators are carefully reviewing Worldcoin's practices to ensure compliance with privacy standards.
In Spain, the regulatory status of Worldcoin is not explicitly clear from the available data. However, given Spain’s adherence to EU data protection laws, it is reasonable to infer that Spanish regulators are likely scrutinizing Worldcoin’s biometric data practices closely alongside other EU regulators.
South Korea's stance or regulatory investigations concerning Worldcoin are not publicly documented, but given its proactive regulatory framework for cryptocurrencies, it might be under review. In Hong Kong, while no explicit public actions or investigations are documented, the evolving but relatively progressive crypto regulatory environment suggests potential monitoring.
Worldcoin has faced a ban in Kenya, reflecting regulatory pushback due to concerns over privacy and data protection. This ban underscores the heightened caution by Kenyan authorities regarding biometric data usage by foreign tech projects and the unclear legal frameworks around such digital identity verification systems.
The impact of these bans and investigations on Worldcoin's future is uncertain due to heightened privacy concerns. Worldcoin criticized the AEPD's actions as circumventing GDPR procedures and spreading inaccurate claims about their technology. The company's Data Protection Officer expressed willingness to engage with regulators, citing ongoing communication with Bavarian authorities.
Privacy campaigners continue to raise concerns about Worldcoin's data collection practices, adding pressure on the company to navigate these regulatory hurdles successfully. The regulatory challenges facing Worldcoin are significant, as it attempts to offer digital IDs and free cryptocurrency while addressing privacy concerns and navigating global investigations. The ban in Spain continues to underscore these concerns about biometric data processing risks in cryptocurrency projects.
- In light of the recent ban in Spain and similar actions taken by jurisdictions like South Korea, the UK, Hong Kong, and Kenya, Worldcoin's expansion in the finance sector, particularly in the realm of cryptocurrency and digital IDs, faces numerous regulatory challenges worldwide.
- Given the increasing scrutiny from regulators over privacy compliance and biometric data processing risks in cryptocurrency projects, like that seen in Spain and other regions, it is essential for tech companies like Worldcoin to engage effectively with regulatory bodies to navigate these complex issues.
