- Worldcoin will suspend all operations in Spain.
- The firm’s project has come under scrutiny by Spanish regulatory watchdogs.
- Worldcoin has recently exited one of its key markets due to compounding regulatory troubles.
Over the past months, Worldcoin has come under scrutiny for its controversial method of operation, drawing regulatory ire for its collection and usage of user data.
At the latest, the firm has come under investigation by Spanish authorities.
Worldcoin Exits Spain, Temporarily
On Tuesday, June 4, 2024, the Spanish Agency for Data Protection (AEPD) ordered the suspension of Worldcoin’s operation in the region. This restriction will prohibit the firm from conducting operations over the upcoming months, allowing authorities to conduct investigations into its handling of user data.
Sponsored
The decision comes amid privacy concerns over Worldcoin’s operations, as part of the broader ongoing scrutiny of the firm by the data watchdog of Bavaria, Germany, Bayerische Landesamt für Datenschutzaufsicht (BayLDA).
“In this context, the company has made a legally binding commitment not to resume its activity in Spain until the end of the year or until the BayLDA adopts a definitive resolution in relation to the data processing carried out by the company,” the announcement read.Prior to its suspension in Spain, Worldcoin was recently driven out of Hong Kong for regulatory violations. Following a months-long investigation, the firm revealed it violated the Privacy Ordinance by failing to clarify whether it was obligatory or voluntary for customers to provide their personal information.
Read More
Jenner Token Faces Disaster Days After Launch, Tokens Dumped
Is XRP Stuck in a Slump or Coiling Up for a Massive Surge?
Ripple Doubles Down with New Filing Letter in SEC Lawsuit
The report has not necessarily impacted the firm’s native token, which has maintained stable momentum, trading at $4.77 at press time.
On the Flipside
- Despite the wave of scrutiny, Hong Kong recently celebrated amassing 10 million users.
- In 2023, two Worldcoin officials faced detention in Kenya.
- Worldcoin is expected to increase the supply of its native token by 19% within the next six months.
Why This Matters
The regulatory troubles in Spain for Worldcoin compound its already shaky regulatory reputation, and the lengthy suspension of operations could significantly impact the firm’s operations.
Sponsored
Read more about recent actions aimed at maintaining user data security:
Worldcoin Open Sources Security System to Keep User Data Safe
Discover more about this blame tussle between Binance and a user:
Binance Denies Responsibility for Chinese Investor’s $1M Hack
