Worldcoin, a cryptocurrency and ID project co-founded by Sam Altman, has caught the attention of the UK’s data regulatory agency, the Information Commissioner’s Office (ICO). Concerns have been raised about the project’s privacy practices and the security of critical biometric data.
The ICO confirmed its awareness of the project’s launch in the country and announced its intention to conduct a thorough examination and additional research to evaluate Worldcoin’s compliance with data protection regulations. However, the regulatory agency refrained from providing further comments until there is further development on the matter.
Worldcoin made headlines in May 2023 when it secured a substantial funding of $115 million from investors, including Bain Capital Crypto, and Andreessen Horowitz. Despite facing skepticism about its feasibility, the project managed to attract over 2 million users during its beta phase.
However, a study conducted by MIT Technology Review found that a significant portion of the first million users may have been recruited through deceptive practices, cash incentives, and exploitation of workers in developing nations. These recruitment methods have raised concerns and criticism within the crypto community.
Privacy issues and apprehensions about the security of user biometric data are among the top worries expressed by members of the crypto community regarding the Worldcoin project
Notably, Worldcoin’s native token, WLD, will not be available for purchase in the United States, except in cases where there is UK involvement. Major American exchanges, including Coinbase and Kraken, have opted not to offer the token.
The developers of Worldcoin have cited regulatory uncertainty in the United States as their primary reason for this decision. However, many crypto supporters argue that the token may potentially be viewed as an unregistered security.
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