In spite of Bavarian data watchdog’s ongoing privacy and security assessment, a blockchain project, Worldcoin went live on 24th July. Michael Will, president of Bavaria’s Data Protection Authority revealed that the project was still under review at launch time. While the law does not make it compulsory for companies like Worldcoin to get approval before launching, it’s noteworthy that the company establishes an entity in Bavaria to manage data for its European users hence, making the Bavarian DPA a lead supervising body.
Simultaneously, Germany’s Federal Financial Supervisory Authority, BaFin’s observation on Worldcoin’s financial aspect remains uncertain – whether it requires BaFin’s permit like other crypto firms is presently unclear. Worldcoin, founded by Sam Altman, coexists with controversial criticisms involving privacy issues, reported exploitation of developing nations, and dominance over global identification infrastructure – typically a government’s job.
Looking more closely at the Worldcoin enterprise, its modus operandi involves a unique user verification process via iris scans, artificial intelligence, and zero-knowledge proofs. Worldcoin, in response to the building controversy, maintains a silent facade refusing comments on requests at the time of its publication.
A significant point of contention began seven months before the full-fledged launch when questions arose on the legitimacy of Worldcoin’s Bavarian entity acting as a data controller within the confines of the GDPR. Data controllers play an essential role in deciding the processing of data and are liable for any actions concerning data processing.
Under the requirements of GDPR, companies that handle sensitive data must submit a privacy impact assessment. After reviewing Worldcoin’s submission in March, Bavaria’s DPA was left with more questions despite conceding that Worldcoin met GDPR needs.
Still, the interaction between the company and the authorities appears somewhat convoluted and confusing, as both parties’ narratives indicate a lack of communication. Even though recent communication seems cooperative, what this means for Worldcoin’s future operations remains hazy.
Presently, data authorities in Europe are meticulously examining Worldcoin’s data flows, the pseudonymization of personal data, and the transparency concerning their users’ consent. Furthermore, authorities in Kenya have temporarily frozen Worldcoin activities, citing privacy, security, and financial regulation apprehensions.
In conclusion, while Worldcoin’s used technologies aren’t innovative, the amalgamation is and indeed poses challenges due to its complex nature. However, both sides remain optimistic, with the authorities remaining confident in their ability to conduct a thorough assessment.
Source: Coindesk
