Worldcoin faces probe over biometric data collection in South Korea

South Korea’s data protection agency has launched an investigation into Worldcoin, a cryptocurrency project that claims to distribute its tokens to anyone who scans their eyes with a device called Orb. The project has raised concerns over the privacy and security of the biometric data collected from millions of potential users.

What is Worldcoin and how does it work?

Worldcoin is a cryptocurrency project that aims to create a universal basic income for everyone on the planet. The project was co-founded by Sam Altman, the former president of Y Combinator, a prominent startup accelerator in Silicon Valley. Worldcoin claims to have a novel way of distributing its tokens: anyone who wants to receive Worldcoin must scan their eyes with a device called Orb, which verifies their identity and uniqueness. The project says that this method ensures a fair and inclusive distribution of the tokens, as well as prevents fraud and duplication.

According to Worldcoin’s website, the project has already distributed over 30 million tokens to more than 350,000 people in 15 countries, including South Korea, India, Nigeria, and Mexico. The project says that it plans to reach one billion people by the end of 2024. Worldcoin also says that it has partnered with various organizations and communities to help distribute the tokens and provide education and support to the users.

Why is Worldcoin under investigation in South Korea?

However, Worldcoin’s ambitious vision has also raised some red flags, especially in South Korea, where the project has been operating since November 2023. The Personal Information Protection Commission (PIPC), the country’s data protection agency, has announced that it has launched an investigation into Worldcoin, following reports of potential violations of the Personal Information Protection Act (PIPA).

The PIPC said that it will examine whether Worldcoin has obtained the consent of the users before collecting their biometric data, whether it has complied with the principles of data minimization and purpose limitation, whether it has implemented adequate security measures to protect the data, and whether it has transferred the data to third parties without authorization. The PIPC also said that it will cooperate with other relevant authorities, such as the Financial Services Commission (FSC) and the Korea Communications Commission (KCC), to ensure a comprehensive and thorough investigation.

The PIPC’s investigation was prompted by a series of reports by local media outlets, such as SBS and Hankyoreh, which exposed some of the questionable practices and risks of Worldcoin. The reports revealed that Worldcoin’s Orb devices, which are supposed to scan the users’ eyes and encrypt the data locally, are actually connected to the internet and send the data to Worldcoin’s servers in the US. The reports also claimed that Worldcoin’s consent forms are vague and misleading, and that some of the users were not fully informed of the purpose and scope of the data collection. Moreover, the reports raised concerns over the possibility of data breaches, hacks, leaks, or misuse of the biometric data, which could have serious consequences for the users’ privacy and security.

How has Worldcoin responded to the allegations?

Worldcoin has denied any wrongdoing and defended its project as a legitimate and beneficial initiative. The project said that it respects the privacy and rights of the users, and that it follows the highest standards of data protection and encryption. Worldcoin also said that it does not store or share the users’ biometric data, but only uses it to generate a unique identifier that cannot be reversed or linked to the users’ identity. Worldcoin also said that it has obtained the consent of the users in accordance with the local laws and regulations, and that it has provided clear and transparent information about the project and the data collection.

Worldcoin also said that it welcomes the PIPC’s investigation, and that it will cooperate fully with the authorities. Worldcoin said that it hopes to resolve any misunderstandings or concerns, and that it will continue to work with the local partners and communities to distribute the tokens and improve the lives of the people.