Worldcoin, a global financial network and identity platform founded by Sam Altman, CEO of OpenAI, has been unsuccessful in its legal battle to continue its operations in Spain. The company filed an injunction against the Spanish Data Protection Agency’s (AEPD) order to cease data collection in the country, but the court rejected the request.
On March 6, the AEPD issued a temporary order, banning Worldcoin from collecting data in Spain for three months. The purpose of this order is to investigate complaints that users in Spain cannot withdraw their consent and that Worldcoin has collected data from minors.
However, Worldcoin has refuted these allegations. In a statement to Cointelegraph, the company accused the AEPD of “circumventing EU law by spreading inaccurate and misleading claims” and criticized their lack of response to previous letters.
On the same day, Worldcoin’s parent company, Tools for Humanity, filed a lawsuit against the AEPD’s order after suspending its operations in Spain. They presented a motion to suspend the regulator’s order to the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. Worldcoin’s representatives argue that the AEPD’s ban contradicts the applicable European Union legislation, including the General Data Protection Regulation (GDPR).
According to a report by TechCrunch, on March 11, the Supreme Court of Spain rejected Worldcoin’s request for an injunction, emphasizing the importance of safeguarding the public interest. The court also expressed doubts about the credibility of the information provided by Worldcoin regarding the consent of its data donors.
This is not the first time Worldcoin has faced regulatory pressure in a country. In January 2024, Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) launched an investigation into the company’s local operations, citing serious risks to personal data privacy. Prior to that, Worldcoin’s services were suspended in Kenya and India.
The controversy surrounding Worldcoin centers around its use of biometric scanning devices known as “orbs.” Users of Worldcoin sign up for the service by downloading an app and are then directed to the nearest facility with an orb, where they must undergo an eye scan. Once their identity is verified, it is linked to their unique biometric data, which can be independently verified using Worldcoin’s services. Users who sign up for the service and activate their accounts in the World App are rewarded with Worldcoin’s WLD token.