German watchdog goes after Sam Altman’s Worldcoin over biometric data practices

The post German watchdog goes after Sam Altman’s Worldcoin over biometric data practices appeared on BitcoinEthereumNews.com.

Worldcoin, a digital identity project co-founded by OpenAI CEO Sam Altman, is under regulatory scrutiny in Germany for its handling of biometric data. The Bavarian State Office for Data Protection Supervision (BayLDA) has concluded its investigation into the project, demanding compliance with the European Union’s General Data Protection Regulation (GDPR). BayLDA’s investigation, initiated in 2023, centered on Worldcoin’s flagship technology, World ID. The company’s tech uses iris biometrics to verify digital identity. The process involves scanning individuals’ eyes with devices called “Orbs” to generate unique digital identifiers, intended to distinguish real users from bots. Data protection concerns In its findings, BayLDA highlighted significant risks associated with collecting and processing sensitive biometric data. Early phases of Worldcoin’s data practices were flagged as non-compliant, particularly the storage of iris codes in centralized databases without sufficient legal basis.  The regulator ordered the deletion of all improperly collected data and mandated that Worldcoin implement a GDPR-compliant data deletion procedure within one month of the ruling’s effective date. Michael Will, President of BayLDA, emphasized the importance of protecting users’ rights.  “With today’s decision, we are enforcing European fundamental rights standards in favor of the data subjects in a technologically demanding and legally highly complex case,” he said. The ruling also ensures users can exercise their right to the erasure of iris data provided to Worldcoin. Worldcoin seeks to clarify issues with BayLDA Worldcoin has appealed the decision, seeking judicial clarity on whether its Privacy Enhancing Technologies (PETs) satisfy the EU’s legal definition of anonymization. The company argues that the current GDPR framework lacks a clear definition, which hinders efforts to protect personal data in the age of artificial intelligence. “GDPR currently does not provide this, and both World Foundation and World contributor Tools for Humanity (TFH) believe it is essential for this issue to be…

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