UK Data Regulator Investigates OpenAI’s Crypto Project Worldcoin -TGN

UK data regulator Information Commissioner’s Office plans to conduct “further investigation” into OpenAI’s crypto project – Worldcoin.

According to a Reuters report, the data watchdog said Thursday it will conduct an investigation into Worldcoin, a crypto project that is building a reliable solution to differentiate humans from AI online. The unique venture allows customers to scan their eyeballs in exchange for a digital identification – “World ID” – and free cryptocurrency.

“We take note of WorldCoin’s launch in the UK and will investigate further,” said an Information Commissioner’s Office spokesperson.

The source went on to say that organizations must have a “clear legal basis for processing personal data. Where they rely on consent, it must be given freely and can be withdrawn without detriment.”

Worldcoin, the OpenAI project backed by CEO Sam Altman, launched Monday and describes itself as a “digital passport” to help users prove they are human. “Worldcoin consists of a privacy-preserving digital identity (World ID) and, where permitted by law, a digital currency (WLD) received simply because it is human,” the co-founders said at the launch.

Post-launch, the native coin WLD saw a significant price increase to $3.58 amid concerns from crypto traders and advocates. At the token launch, 143 million WLD was issued, of which 100 million was allocated to market makers and the rest of the tokens were rolled out to investors who verified their identity by scanning their eyeball during the Worldcoin prelaunch.

The crypto project has two million user logins during its initial pilot phase and plans to expand its operations, scanning users’ irises for identification, to 20 countries.

The Worldcoin spokesperson told CoinDesk that the project “continues to review local laws and regulations to ensure compliance.”

With regard to the General Data Protection Regulation (GDPR), Worldcoin Foundation is fully compliant with all laws and regulations related to the collection and transfer of biometric data, including the European General Data Protection Regulation.

The data regulator’s move to investigate the Worldcoin project comes amid a rise in data privacy concerns surrounding the use of eyeball scans. Speculators around the world have been asking questions about how the data is stored and secured, as well as measures taken to protect users’ privacy rights.

As a result, the project would likely come under increased scrutiny from regulators around the world and the announcement of Brit’s data controller marks an important step in understanding the implications of Worldcoin.