NEW DELHI (CoinChapter.com) — In a recent development, Worldcoin, the contentious cryptocurrency and ID project, has come under scrutiny from data regulators in the United Kingdom due to mounting concerns over privacy and the safety of critical biometric data.
According to a recent Reuters report, the Information Commissioner’s Office (ICO) in the United Kingdom has acknowledged the launch of Worldcoin and stated that they would closely examine the project while initiating further inquiries to ensure compliance with data laws.
According to market tracker CoinGecko, the Worldcoin token experienced an initial surge after its Monday launch, reaching a peak value of $3.30. However, by Tuesday, the token’s value had slightly declined to $2.01.
Onboarding Controversy and Privacy Worries Regarding Worldcoin
Worldcoin, co-founded by OpenAI’s CEO Sam Altman, gained attention for securing $115 million in funding from major investors like Andreessen Horowitz, Bain Capital Crypto, and Distributed Global.
During its beta phase, Worldcoin onboarded over 2 million users despite criticism and concerns from various quarters about the project’s nature and practices.
However, a recent study by MIT Technology Review revealed a disturbing fact.
It says that most of the first one million users were brought on board through controversial means. Reports suggested the onboarding process involved “deception, cash handouts, and exploiting workers” in developing countries, sparking outrage within the crypto community.
The project’s critics have also expressed concerns about users’ biometric data security and overall privacy. As the Worldcoin project centers around digital identification, the storage and protection of sensitive biometric information have become subjects of scrutiny, prompting data regulators to intervene.
US Exclusion and Unregistered Security Speculation
Aside from the potential UK inquiry, Worldcoin’s native token, WLD, is facing another setback as it will not be launched in the US.
Due to regulatory concerns, major US-based exchanges such as Coinbase and Kraken have chosen not to list the token. While the project developers attribute this decision primarily to regulatory issues, some crypto proponents contend that Worldcoin’s classification as an unregistered security has also played a role in the exchanges’ cautious approach.
Until further information is available, the crypto world awaits to see how the situation unfolds and how the project addresses the mounting concerns surrounding its privacy practices and data safety protocols.
