Co-founded by Sam Altman, crypto project Worldcoin is facing increased pressure from German regulators. Roughly speaking, the BayLDA imposes strict measures on the management of biometric data. Which raises questions about GDPR compliance. More details below!
Strict regulation to protect crypto users
The Bavarian data protection authority, BayLDA, recently concluded an investigation into Worldcoin. According to its findings, the processing of biometric data by the crypto project does not comply with GDPR standards. BayLDA therefore requires Worldcoin to implement a compliant data deletion procedure within 30 days.
Michael Will, President of BayLDA, said:
“All users will now have the unlimited possibility of asserting their right to erasure. »
These adjustments aim to strengthen user rightsa crucial issue in the crypto ecosystem.
Worldcoin hits back against German regulators
In response, Worldcoin appealed this decision. The crypto company highlights its anonymization technologieswhich it considers essential to data protection in the age of AI. However, a spokesperson for the World Foundation highlighted the lack of a clear definition of anonymization under the GDPR.
To ease tensions, Worldcoin has already announced the removing your old system in May 2024. This includes stored data. However, BayLDA emphasizes that some illegally collected recordings still need to be deleted.
What implications for innovation in the crypto sector?
This case highlights the challenge of balancing crypto innovation and regulation. If data anonymization is essential for strengthen online privacythe expectations of regulators impose high standards. This case could also serve as a reference for other digital identity projects facing the same challenges.
In any case, the clash between Worldcoin and BayLDA illustrates the growing tensions between regulation and innovation in the crypto sector. As the European Union strengthens its standards, this debate marks a crucial step for the future of digital technologies and privacy.
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