Germany's Federal Data Protection Commission has ordered cryptocurrency project Worldcoin to remove all user iris scan data, citing privacy concerns and potential violations of EU data protection laws.
The project, founded by OpenAI CEO Sam Altman, uses iris scanning technology to verify user identities and prevent fraud in cryptocurrency transactions. Users receive cryptocurrency rewards in exchange for submitting their biometric data.
BfDI President Ulrich Kelber emphasized that handling sensitive biometric information requires strict compliance with the General Data Protection Regulation (GDPR). "The collection and storage of sensitive biometric data must comply with strict GDPR standards. Any deviation is unacceptable," Kelber stated.
While Worldcoin maintains that its system provides secure data encryption and privacy protection, privacy advocates have praised the German regulator's decision. Critics argue that centralized databases containing biometric information pose substantial risks.
The ruling creates new challenges for blockchain and cryptocurrency projects operating in Europe. Legal experts suggest this case may establish precedent for other ventures using personal data, particularly as AI and deepfake technologies advance.
Worldcoin has expressed willingness to work with regulators to address their concerns. However, the company must now navigate strict European privacy laws while maintaining its innovative approach to identity verification.
The decision reflects Germany's strong stance on data privacy protection and signals potential hurdles for companies developing biometric authentication tools. As digital impersonation threats grow, businesses face increasing pressure to balance security measures with privacy requirements.
For the broader cryptocurrency industry, this development highlights the growing importance of building privacy-conscious systems that align with international data protection standards. Companies must now carefully consider their approach to collecting and storing sensitive user information while operating in regulated markets.