Argentina opens investigation into Worldcoin amid the growing regulatory scrutiny

The government of Argentina has informed Worldcoin that it has launched an investigation into its data collection activities in the country. The Public Information Access Agency (AAIP), the country’s data regulator, sent a letter to the Worldcoin Foundation requesting information on how the organization handles the personal information of Wordcoin users.

Argentina has had it with Worldcoin

Recently, the government of Argentina announced that it is investigating how Worldcoin [WLD], the blockchain project founded by OpenAI’s Sam Altman, handles personal data.

Last week, Daniel Monastersky, a partner at Data Governance Latam and the Director of the Centre for Studies in Cybersecurity and Data Protection at the CEMA University in Buenos Aires, submitted a complaint to the Agency for Access to Public Information of Argentina (AAIP). AAIP is an Argentine data auditor organization.

The AAIP stated its intention to investigate the security protocols in place to protect the privacy of Argentine Worldcoin users.

According to the agency, the case has gained notoriety in recent weeks due to the practice of scanning the faces and irises of numerous individuals in exchange for monetary compensation at various locations in Buenos Aires City and the provinces of Buenos Aires, Córdoba, Mendoza, and Rio Negro.

According to the AAIP, a company like Worldcoin is required to register with the AAIP, provide information about its data processing policy, and specify the reason for collecting sensitive data and the length of time it will be stored.

In addition, the agency requires information regarding the security and confidentiality measures implemented to protect sensitive data. The AAIP has not confirmed whether or not Worldcoin conforms to the standards.

Jurisdictions investigating Worldcoin

Worldcoin has recently been scrutinized by various administrations. Kenya’s Ministry of the Interior suspended Worldcoin’s operations last week, and on Saturday, Kenyan police raided Worldcoin’s Nairobi warehouse, seizing documents and machinery. Worldcoin’s verification operations in Kenya have been suspended since August 2.

Sam Altman, one of the co-founders of the Worldcoin project, has stated publicly that its goal is to register 2 billion people. However, the project has gained opposition in several countries due to its intrusive personal data requirements, such as scanning the irises of users to verify their identities.

Argentina is the most recent nation to investigate the operations of the Worldcoin Foundation. Additionally, French and Bavarian data regulators are on the cutting edge of data treatment procedures.

Critics contend that the company’s disclaimer regarding biometric data raises concerns regarding the lack of control consumers have over the subsequent use of their data.

Argentina requests that the organization detail the security and confidentiality measures it employs to safeguard the personal information of Argentine citizens.

The crypto community weighs in or Worldcoin

Vitalik Buterin, the co-founder of Ethereum [ETH], previously expressed his thoughts on the project. He stated that the privacy and moral concerns expressed about the project could be legitimate. However, he also emphasized the significance of the project’s proof of personhood because it appeared to solve the spamming issue.

ZachXBT, a prominent on-chain investigator, accused Worldcoin of exploiting individuals from developing nations. ZachXBT stated that the project’s verification procedure could result in the creation of black-market accounts.

The value of $WLD jumped to $2.15 immediately following its release on July 24. However, since then, it has decreased by nearly 20%. At press time, $$WLD traded at $1.75 per share.

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