Worldcoin clarifies legality issues following Spain’s 3-month ban on its operations

Worldcoin recently publicly confirmed that this is the case legality of its activities around the world, amid growing regulatory concerns that have led some countries to halt operations in their jurisdictions.

The public statement comes in the wake of a recent decision by Spain’s National Securities Market Commission (CNMV) to ban the startup’s operations in the country for three months. The CNMV’s decision was based on Worldcoin’s inability to obtain authorization to provide investment services or engage in securities-related activities in Spain.

Despite these hurdles, Worldcoin said it remains firmly committed to complying with local and international laws, and ensuring its innovative approach to identity verification remains accessible and compliant worldwide.

According to the blog:

“Worldcoin operates legally in all locations where it is available.

Several other authorities have also raised concerns about the project’s transparency and data security in recent months, leading to investigations and regulatory action in multiple countries, including Germany, France, South Korea, Argentina, the United Kingdom and Kenya.

There is no money involved

The project emphasized that the data collection process adheres to strict ethical guidelines and does not involve the buying or selling of personal information. Furthermore, the project has implemented advanced security measures to protect users’ biometric data.

Instead, Worldcoin aims to provide universal access to financial services and identity verification through its World ID, a privacy-focused global identity network designed to reduce economic inequality by enabling equal participation in the digital economy.

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According to the blog, the project operates under strict compliance with data protection and privacy regulations, including the EU GDPR and Argentina’s Personal Data Protection Act.

It added that regulatory bodies such as the Bavarian State Data Protection Supervisory Office are closely monitoring Worldcoin’s activities and ensuring that the highest legal and ethical obligations are met.

Additionally, Worldcoin has open-sourced crucial components of its technology to ensure its transparency and recently underwent a security audit by Trail of Bits.

Progress despite challenges

Despite scrutiny from regulators in several countries, Worldcoin has achieved major milestones, including reaching 4 million app downloads across iOS and Android platforms since its launch in July 2023. The app rewards users with Worldcoin’s native WLD token after their identity has been successfully verified via iris scans.

Worldcoin’s technology revolves around the Orb device, which performs iris scans to generate a unique IrisHash for each user. This IrisHash, securely recorded on the blockchain, ensures a clear and unrepeatable digital identity. The initiative aims to deliver a universally verified digital identity, a goal that the company says has been unattainable until now.

Worldcoin has also continued its expansion efforts, recently launching in Mexico and Singapore, with plans to expand further into Asia. This expansion reflects the company’s determination to continue its mission despite regulatory obstacles, with the aim of revolutionizing the way identity is verified in the digital age.

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