Portugal's data protection authority has temporarily banned Worldcoin's operations within the country, a setback for the controversial crypto biometrics venture. The Worldcoin ban, which Spain imposed earlier this month, has reduced the company's European presence to Germany, which allows biometric data gathering.

Portugal implemented the Worldcoin ban due to concerns surrounding Worldcoin's controversial practice of scanning the eyeballs of children, according to a TechCrunch report. Concerns included insufficient notification of sensitive biometric data processing to users and the lack of options to remove or cancel consent.

Worldcoin's use of blockchain technology to store biometric tokens' long-term preservation of personal data could go against EU data protection rules. These regulations allow people to edit, alter, or remove their personal data.

Sam Altman, a prominent figure in the tech industry, has expressed support for Worldcoin's ambitious project. Worldcoin seeks to create and manage an identity layer that focuses on the concept of "humanness." However, the venture's quasi-financial incentives for biometric submission have drawn criticism.

Worldcoin Receives Ultimatum

After receiving multiple complaints about Worldcoin, the Portuguese data protection authority, CNPD, decided to take action. According to reports, more than 300,000 people in Portugal underwent iris scans in return for Worldcoin cryptocurrency.

Portugal was removed from Worldcoin's list of countries where eyeball scans may be booked due to the CNPD's warnings about children's data and 24-hour ultimatum to comply with the local stop-processing order.

Worldcoin was banned in Spain for three months this month because of privacy concerns about its iris-scanning technology. According to Reuters, the Spanish data protection regulator, AEPD, has issued a demand to Worldcoin, urging them to immediately stop collecting personal data and halt the use of acquired data.

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Data from November, more than 360,000 people in Spain have registered for Worldcoin, as previously reported by TechTimes.

Spain's Worldcoin ban  comes in response to numerous complaints regarding insufficient information disclosure, the collection of data from minors, and the lack of an option for individuals to withdraw their consent.

Worldcoin fired back, accusing the AEPD of circumventing around EU regulations and disseminating false details about its technology.

Mounting Concerns Over Worldcoin's Possible Data Privacy Violations

According to information provided on its website, Worldcoin's "orb" devices have attracted the interest of over 4 million individuals from 120 nations who have registered to undergo iris scanning. Privacy groups from Argentina to Germany have criticized the initiative for collecting, storing, and using personal data, while  experts have highlighted concerns about Worldcoin's use of data for targeted marketing, prompting inquiries in France.

In a recent development, the Kenyan government has put a temporary halt on new sign-ups for Worldcoin, citing an ongoing data protection inquiry.

A UK Information Commissioner's Office (ICO) representative said that firms must conduct a Data Protection Impact Assessment (DPIA) before processing data. The spokesperson highlighted the significance of organizations ensuring they have a valid legal foundation for handling personal data. Consent must be voluntary and revocable, without harm.

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