Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Worldcoin, an identity and financial network project, fined over $200,000 in Buenos Aires for multiple National Consumer Defense Law violations.Â
What Exactly Is Worldcoin’s Offense?
These fines resulted from an investigation initiated by the consumer protection authorities in April 2024.
The Buenos Aires authorities concluded that the project had included improper clauses in the terms and conditions of the service agreement and failed to exercise due diligence in verifying identity.
This created serious repercussions because not only was the data collection not done properly, but it also allowed minors to register their biometric data.Â
Worldcoin has also been criticized for its lack of transparency in its processes for collecting and storing user data.Â
What Points Are Particularly Critical Here?
Of course, biometric data is particularly sensitive, unlike a password that can be changed anytime. Therefore, regulations regarding this type of data are exceptionally strict.
Also, any combination of breaking the law and involving minors makes the offense much more serious.
The fine may not be the largest we’ve seen, but the reputational and legal implications for Worldcoin remain very high.
The response of Worldcoin Foundation
The Worldcoin Foundation made the following official statement:
“The Worldcoin Foundation is surprised by the recent fine imposed by the Provincial Directorate for Consumer and User Rights Defense of Buenos Aires and rejects it. The Foundation believes there is a fundamental misunderstanding of the facts and the legal framework and will appeal this decision, confident in its position and the precedents set by competent courts.
"The Worldcoin Foundation remains committed to maintaining transparent and fair practices in Argentina, and will continue to uphold the highest standards of data privacy protection in compliance with all applicable laws and regulations in the markets where Worldcoin operates."
Note: The article was updated to include the official statement by Worldcoin Foundation.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.