The project has faced criticism from within the fintech world over its dystopian features and privacy concerns.
The newly launched controversial crypto and ID project Worldcoin could face inquiries from data regulators in the United Kingdom as it raises concerns over privacy and critical biometric data safety, according to a Reuters report.
The Information Commissioner’s Office (ICO) — the U.K.’s data regulatory body — acknowledged the launch of the crypto project in the country, and said it would examine the project and make further inquiries concerning data laws, reported Reuters.
When Cointelegraph reached out to the ICO to ask about their reported probe into Worldcoin, the independent regulatory body declined to comment. A spokesperson for the regulator said they “have not announced anything publicly to confirm or deny if we are looking into Worldcoin. Until then I would not be able to pass comments.”
The digital identification-centred crypto project launched on July 24 and was co-founded by OpenAI's CEO Sam Altman. The project secured $115 million in funding in May earlier this year with funding from A16z Crypto, Bain Capital Crypto, and Distributed Global. Worldcoin onboarded over 2 million users during its beta phase despite many sharing concerns over the nature of the project.
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While those numbers might look impressive, a study by MIT Technology claimed that the majority of the first one million users were onboarded using "deception, cash handouts and exploiting workers" in developing countries. Several aspects of the project have not gone down well with the crypto community, from concerns over the security of users’ biometric data to privacy concerns.
A global database of human IDs issued after an eye scan, paid for with useless Worldcoin token, connected with all financial transaction data of each individual managed by a centralized non-profit collecting sensitive data for KYC/AML.
— Anita ⚡️ Bitcoin for Fairness (@AnitaPosch) July 24, 2023
WHAT COULD GO WRONG? https://t.co/8K6R17vBb0
Apart from an enquiry in the UK, the native token WLD is not going to launch in the United States and none of the native crypto exchanges such as Coinbase or Kraken have listed it. The project developers cited regulatory concerns in the U.S., as the key reason behind the decision. However, many crypto proponents believe it qualifies as unregistered securities.
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