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Colombian Authorities Investigate Worldcoin Over Data Privacy Allegations

By  |  August 26, 2024

Colombia’s Superintendence of Industry and Commerce (SIC) has launched an investigation into Worldcoin and its parent company, Tools for Humanity, for alleged breaches of the nation’s data protection regulations. The SIC announced on Tuesday that this probe represents an initial indictment, not a formal accusation. According to Coindesk, the investigation aims to ascertain whether the companies have violated Colombian data protection laws in their handling of sensitive personal information.

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    The SIC’s inquiry is focused on whether Worldcoin, which operates a decentralized identity project, has properly implemented data processing policies and privacy notices in Colombia. Worldcoin, a cryptocurrency initiative founded by OpenAI’s Sam Altman, is reportedly gathering data using its Orb device at 25 locations across Colombia, including major cities such as Bogotá, Medellín, Cartagena and Barranquilla, per Coindesk.

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    If found in violation, Worldcoin could face significant repercussions from the SIC, ranging from economic penalties to a temporary suspension or even a permanent closure of its operations. This scrutiny adds to a growing list of regulatory challenges faced by Worldcoin in Latin America. In August, Ecuador’s central bank issued a statement clarifying that crypto assets should not be considered legal tender, shortly after Worldcoin launched its operations in the country. Additionally, the Argentine Agency for Access to Public Information (AAIP) has also begun an inquiry into Worldcoin’s data collection practices, as reported by Coindesk.

    Source: Coindesk