Colombia Shuts Down Worldcoin Operations Over Data Privacy Concerns
Colombia’s industry and trade authority has ordered the immediate and definitive closure of Worldcoin’s operations within the country, citing multiple violations of its data protection laws. The decision underscores growing global scrutiny surrounding the controversial cryptocurrency project and its collection of biometric data.
The Colombian Industry and Trade Supervisory Authority (Superintendencia de Industria y Comercio, SIC) announced on Friday that World Foundation and Tools for Humanity – the entities behind Worldcoin – failed to comply with Law 1581 of 2012 regarding the processing of personal data. According to a statement released on X, the SIC found that the companies were collecting biometric data without adequate safeguards or openness.
Worldcoin, co-founded by sam Altman, CEO of OpenAI, launched in 2019 with the ambitious goal of creating a globally inclusive identity and financial network. The project utilizes iris scans to verify users’ identities, offering Worldcoin tokens in exchange for this biometric data. While active in Colombia since May 2024, the project attracted thousands of participants, raising immediate concerns among regulators.
The SIC resolute that Worldcoin unduly influenced participants by offering financial incentives without providing “clear, transparent and simple data about the specific purposes of processing” the collected biometric data.Moreover, the regulator found that the processing of iris images occurred without sufficient disclosure of the procedures, objectives, and security measures in place. Consequently, the SIC has mandated the immediate deletion of all sensitive personal data, codes, and biometric templates, and prohibited the companies from further data collection or processing within Colombia.
“In Colombia there is the right to habeas data. You are the owner of your data. Sensitive data such as the iris of your eyes cannot simply be shared for money without you knowing how it will be used,” Colombian President Gustavo Petro stated on X, publicly supporting the SIC’s decision.
Worldcoin has announced its intention to appeal the ruling, claiming that the decision is based on “outdated policies and technology.” In a statement to the Colombian edition of Forbes,the company asserted that it does not store biometric data,that consent is obtained through a multi-step,informed process,and that receiving Worldcoin tokens is entirely optional. Worldcoin expressed hope for an “open dialog” with the SIC to clarify the technology’s functionality.
However, the Colombian action is part of a broader trend of increasing regulatory resistance to Worldcoin’s operations worldwide. Just days prior, the Philippine Data Protection Commission (NPC) issued a cease-and-desist order against Tools for Humanity for similar violations of its data protection laws, halting all data collection, including iris scans, in the Philippines.Indonesia temporarily suspended the project in May following public concerns about suspicious activity, and Brazil has initiated a criminal investigation into Worldcoin’s data collection practices.
Why: Worldcoin’s operations were shut down due to violations of data protection laws. Who: The Colombian Industry and Trade supervisory Authority (SIC) ordered the closure of World Foundation and Tools for Humanity, the companies behind Worldcoin. What: The SIC found that Worldcoin collected biometric data without adequate safeguards or transparency, violating Law 1581 of 2012. How did it end?: The SIC mandated the immediate deletion of all collected data and prohibited further data collection in Colombia; Worldcoin intends to appeal the ruling, but faces similar scrutiny and bans
