Colombia’s Superintendence of Industry and Commerce (SIC) has launched an investigation into Worldcoin and its parent company, Tools for Humanity, over alleged violations of the country’s personal data protection laws. Colombian authorities are investigating whether Sam Altman’s Worldcoin violated data policies related to the collection of biometric information. The SIC’s announcement, released on Tuesday, accuses the decentralized identity project of mishandling sensitive personal data and failing to comply with Colombia’s privacy regulations.
The SIC’s action against Worldcoin is a preliminary step to determine whether the companies breached Colombia’s data protection laws. Specifically, the investigation aims to uncover if Worldcoin and Tools for Humanity failed to obtain explicit consent from individuals when collecting their personal data, including sensitive biometric data. The probe will also assess whether the companies neglected to provide adequate information on data processing policies, privacy notices, and mechanisms for handling complaints.
According to its website, Worldcoin, founded by OpenAI’s Sam Altman, currently collects biometric data in 25 locations across Colombia, including major cities such as Bogotá, Medellín, Cartagena, and Barranquilla. The data is collected using Worldcoin’s “Orb” device, which scans users’ irises to create a unique digital identity.
Potential Penalties
If the SIC finds evidence of wrongdoing, Worldcoin could face severe penalties. Possible sanctions include fines of up to 2,000 times the monthly minimum wage, a temporary suspension of activities for up to six months, or even a permanent shutdown of its operations in Colombia. The agency emphasized its dedication to safeguarding citizens’ fundamental rights and urged the public to be vigilant about their personal information.
Governments across Latin America and beyond have raised concerns about the firm’s data practices. In Argentina, the Agency for Access to Public Information (AAIP) is investigating Worldcoin’s data collection methods, while the central bank of Ecuador issued a reminder that crypto assets are not recognized as currency shortly after Worldcoin began operations there.
Global Regulatory Challenges for Worldcoin
Worldcoin, which aims to create a global digital identity system using biometric data, has faced regulatory challenges in several countries. In Kenya, authorities suspended Worldcoin’s operations in August 2023 due to concerns over data protection laws. Kenya suspended the operations of Worldcoin after concerns emerged that Sam Altman’s Worldcoin violated data policies regarding the use of sensitive biometric data. Although the Kenyan investigation concluded in June without alleging any wrongdoing, other countries have taken a stricter stance.
In Europe, Worldcoin is under investigation for potential violations of the General Data Protection Regulation (GDPR). Germany’s Bavarian State Office is examining whether the company’s practices comply with data processing and consent standards. Meanwhile, France’s CNIL is investigating if Worldcoin’s methods align with national privacy laws. Spain has extended its ban on Worldcoin’s operations until the end of this year, while Hong Kong and Portugal have also imposed temporary bans on data collection over privacy concerns. Regulators in Spain believe that Sam Altman’s Worldcoin violated data policies, leading to a temporary ban on its activities in the country.
The firm has also encountered legal challenges in Argentina, where it faces charges of violating consumer laws and a potential fine of $1.2 million. The United Kingdom has announced plans to investigate Worldcoin’s data practices, further increasing regulatory pressure on the company.
Worldcoin and Tools for Humanity have faced significant setbacks due to regulatory actions worldwide. In March, the Spanish Data Protection Agency (AEPD) imposed a ban on the project, which Tools for Humanity contested, arguing that the ban was unlawful as the company is incorporated in Germany, not Spain.
Since its launch in June 2024 in Colombia, Worldcoin has faced increasing scrutiny from local authorities over its handling of sensitive information, such as iris scans. The SIC has warned that if evidence of misconduct is found, the penalties could include substantial fines, temporary closures, or permanent shutdowns.
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