Worldcoin’s Suspension in Spain Extended Amid GDPR Audit, Project Faces Global Scrutiny

• Tools for Humanity has voluntarily extended the suspension of Worldcoin’s activities in Spain for the rest of the year to give the regulator auditing its GDPR compliance sufficient time for the assessment.
• Despite the suspension news, the WLD token has gained 4%, but it has dipped 23% in the past month and lost 55% since the start of March.

Worldcoin’s scrutiny by global regulators is unlikely to stop anytime soon. In the latest development, the project has suspended its activities in Spain for the rest of the year or until European regulators complete an audit of its compliance with the region’s data laws.

Spain ordered Worldcoin to cease its activities in March. The AEPD, which regulates data usage in the country, accused the company of collecting data from minors and, as a precautionary measure, demanded that it pack up and leave in three days. Spain joined a growing list of countries that have banned Worldcoin’s iris-scanning activities, including Portugal and Kenya, as Crypto News Flash reported.

A few days later, the country’s High Court dismissed an attempt to appeal the AEPD’s decision.

This week, Tools for Humanity, the German entity behind Worldcoin, has “voluntarily offered to extend the pause of Worldcoin orb operations in Spain.”

In its announcement, TFH claimed that the move is intended to allow enough time for the German data regulator to complete its audit of the company’s compliance with Europe’s GDPR framework. Specifically, the company pledged to cease using its orbs to scan people’s irises or collect any other biometric data until the compliance assessment is complete.

Despite its poor start in Spain, Worldcoin claims it retains the support of most Spaniards. In a survey it claimed to have conducted recently, 87% of respondents want its operations to resume in Spain.

World ID’s verified proof of humanness can help increase trust online in Spain & around the world ?? pic.twitter.com/rpHEm6tRgF

— Worldcoin (@worldcoin) June 4, 2024

Commenting on the recent move to extend the suspension, TFH’s Chief Legal Officer Thomas Scott cited this study, arguing that Spain’s residents want the company to keep operating.

He stated, “While it is encouraging that, in a recent survey* of World ID users in Spain, more than 80% of the 21,000 respondents said they believe technologies like World ID are important to distinguish between bots and humans online and nearly 90% of them support the project’s return to Spain, we voluntarily offered to extend pausing orb operations in the country.”

He added:

Our commitment demonstrates just how fully committed Tools for Humanity and all Worldcoin project contributors are to explaining the project to AEPD and to allowing BayLDA the opportunity to thoroughly review the project and its technology.

Jannick Preiwisch, who heads the Data Protection Office at the Worldcoin Foundation, criticized Spain’s regulator for “circumventing established procedures under GDPR with their actions.” She added that AEPD is spreading misleading claims about Worldcoin’s technology globally.

WLD trades at $4.88, gaining 3.3% over the past day as trading volume shot up 13%. However, it has lost 23% in the past month, and since the start of March, it’s down by over 50%.