Worldcoin paused services in Spain after legal challenge to temporary ban

A subsidiary of Worldcoin, a controversial crypto blockchain digital identity business founded by Sam Altman, has filed a legal challenge against a suspension order from Spain's data protection authority. The company has also paused its services in the Spanish market.

The Spanish authority instructed Worldcoin to temporarily stop scanning people's eyeballs and processing data collected from individuals in the market. This action was taken under the European Union's General Data Protection Regulation (GDPR) following complaints regarding the processing of data, collection from minors, and lack of consent withdrawal options.

Despite being based in Germany and subject to oversight by the Bavarian data protection authority, other DPAs have the power to issue temporary orders in urgent situations. The AEPD's temporary ban on Worldcoin only applies in Spain, leading the company to challenge the order.

Worldcoin claims to be fully compliant with GDPR and accuses the AEPD of bypassing EU rules. The company has filed a lawsuit against the order and has paused operations in Spain. An ongoing investigation by the BayLDA in Germany will soon be shared with other European DPAs for review.

Concerns about Worldcoin's biometric data collection, consent issues, transparency, and data security have raised GDPR compliance concerns. Authorities are investigating the company's operations in various markets, including Catalonia, where the regional government has issued warnings about the sensitive data being collected.