Colombia Launches Probe into Worldcoin’s Data Practices

• SIC investigates Worldcoin for potential violations of Colombia’s data protection laws.
• Focus on biometric data collection via Orb devices in major Colombian cities.
• Penalties could include fines, suspensions, or permanent closure if found in violation.

Colombia’s Superintendence of Industry and Commerce (SIC) is investigating the decentralized identity project Worldcoin and its company, Tools for Humanity, for possible violations of the country’s personal data protection laws.

This move comes as Worldcoin faces increasing scrutiny over its data collection practices, especially how it handles sensitive personal information. The investigation, announced in a Wednesday statement, will assess whether Worldcoin’s activities in Colombia comply with the nation’s strict data protection rules.

The SIC’s notification, a preliminary step without a formal charge, aims to determine if Worldcoin and Tools for Humanity have broken Colombia’s data protection laws. The investigation centers on the collection of sensitive personal data and the implementation of data processing policies and privacy notices.

Concerns have been raised about Worldcoin’s practices, specifically the collection of biometric data through its Orb devices. These devices are reportedly used in 25 locations across Colombia, including Bogota and other major cities like Medellin, Cartagena, and Barranquilla.

Worldcoin, a project co-founded by OpenAI CEO Sam Altman, assigns World IDs to individuals who participate in iris scans conducted via these devices. In return, participants receive WLD tokens as a form of crypto asset.

Sources indicate that if Worldcoin is found guilty, the SIC could impose severe consequences, including economic sanctions, temporary suspensions of up to six months, or even the immediate and permanent closure of Worldcoin’s operations in Colombia.

This investigation follows similar concerns raised in other Latin American countries, such as Ecuador, where authorities have also scrutinized Worldcoin’s activities.

Even with the ongoing investigations, Worldcoin’s market performance remains positive . At the time of writing, Worldcoin was trading at $1.73 with a 24-hour trading volume of $123,973,475. Market data shows Worldcoin’s value has risen by 8.71% in the last day.