Tools for Humanity, the tech firm behind the eye-scanning crypto startup Worldcoin, has agreed to halt operations in Spain until the year’s end, as disclosed by the Spanish Data Protection Agency (AEPD) in a press release on June 4.
Additionally, the Spanish regulator stated that Worldcoin would not resume data collection activities in Spain until the completion of investigations by Germany’s data protection authority, Bayerische Landesamt für Datenschutzaufsicht (BayLDA), regarding how Worldcoin handles the personal data it gathers.
The outcome of BayLDA’s investigation will determine if Worldcoin can resume operations. However, the temporary ban remains in place, with the regulator reserving the right to take further action if necessary.
The AEPD clarified:
This legally binding commitment adopted by the company does not affect the powers of the BayLDA or the AEPD to adopt additional supervisory measures in case of non-compliance with these obligations.
In March, the AEPD initially imposed a three-month ban on Worldcoin’s data collection activities, citing various issues such as inadequate information disclosure, data collection from minors, and the inability to withdraw consent.
Beyond Spain and Germany, Worldcoin faces regulatory hurdles in several other countries, including Kenya, Portugal, France, and Argentina. In May, Hong Kong authorities ordered the company to cease all operations, labeling its collection of facial and iris data as “unnecessary and excessive.”
Despite these challenges, Worldcoin’s adoption is on the rise, with over 5.5 million individuals verified globally by its Orb device as of June 4. The company also continues its expansion into new markets, recently entering Colombia and engaging with Argentina’s President Javier Milei in San Francisco.
However, Worldcoin’s token, WLD, has struggled significantly due to regulatory issues. CoinMarketCap data shows that WLD is down nearly 60% from its all-time high of $11 and is currently trading at under $5.
