Colombia’s Regulator Notifies Worldcoin of Alleged Data Violation

As a researcher with extensive experience in data privacy and tech innovation, I find myself closely following the developments surrounding Worldcoin and Tools for Humanity. The SIC’s move against these companies, initiated without formal accusation, is a unique approach that raises questions about due process and the nature of these investigations.

As a researcher, I find myself delving into the recent allegations against Worldcoin and its associated entity, Tools for Humanity. The Colombian Superintendence of Industry and Commerce (SIC) has leveled accusations that these entities have breached the personal data protection regime. According to a statement issued by the SIC on Tuesday, this is the crux of their concern.

The initial step taken by the SIC towards Worldcoin involves a preliminary accusation without formally charging them. Essentially, this action is aimed at examining whether the companies under investigation have violated Colombia’s personal data protection laws in the gathering of sensitive personal information, specifically regarding the establishment and implementation of their data processing policies and privacy notices.

As per their website, Worldcoin is presently gathering individual data using their Orb device across 25 locations in Colombia. These locations include not just the capital, Bogota, but also six additional cities like Medellin, Cartagena, and Barranquilla.

In case Worldcoin is deemed responsible, the Securities and Investment Commission might enforce financial penalties such as a temporary six-month halt or an immediate and permanent shutdown of their operations, according to their statement.

As a crypto enthusiast, I’ve been keeping an eye on the developments surrounding Worldcoin, particularly their initiatives in Latin America. Just two months after they launched operations in Ecuador, the country’s central bank has made it clear that “cryptocurrencies are not considered as legal tender” there. It just goes to show that it’s crucial for us investors to stay informed about the regulatory landscape when investing in digital assets.

In August 2023, the Argentine Authority on Public Information Access (AAIP) launched an investigation to examine if Worldcoin’s data gathering methods were lawful.

Worldcoin did not immediately respond to CoinDesk’s request for comment.