Worldcoin, a global financial network and identity provider founded by OpenAI CEO Sam Altman, has been unsuccessful in defending its operations in Spain through legal means. The company filed a request for an injunction against the Spanish Data Protection Agency’s (AEPD) order to stop collecting data in the country, but the court denied the request.
On March 6, the AEPD issued a temporary order prohibiting Worldcoin from collecting data in Spain for three months. The purpose of this order is to investigate complaints that users in Spain are unable to withdraw their consent and that Worldcoin has collected data from minors.
However, Worldcoin has disputed these allegations. In a statement sent to Cointelegraph, the company accused the AEPD of bypassing EU law and spreading inaccurate information. They also claim that the AEPD has ignored their letters for several months.
On the same day, Worldcoin’s parent company, Tools for Humanity, filed a lawsuit against the AEPD’s order after suspending its operations in Spain. They presented a motion to suspend the order before the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. According to Worldcoin’s representatives, the AEPD’s ban contradicts the applicable EU legislation, including the General Data Protection Regulation (GDPR).
According to a report by TechCrunch on March 11, the Supreme Court of Spain denied Worldcoin’s request for an injunction, emphasizing the importance of safeguarding the public interest. The court also expressed doubts about the quality of information provided by Worldcoin regarding the consent of its data donors.
Spain is not the first country where Worldcoin has faced regulatory pressure. In January 2024, the Office of the Privacy Commissioner for Personal Data in Hong Kong announced an investigation into the company’s operations, citing serious risks to personal data privacy. Prior to that, Worldcoin’s services were suspended in Kenya and India.
The controversy surrounding Worldcoin revolves around its use of biometric scanning devices called orbs. Users sign up for the service by downloading an app and are directed to the nearest facility with an orb, where their eyes are scanned for verification. Once verified, user identities are linked to their unique biometric data, which can be independently verified using Worldcoin’s services. Users who sign up for the service and activate their accounts in the World App application are rewarded with Worldcoin’s WLD token.