The controversial project has attracted strong criticism for its iris scanning technology.
On July 28, French privacy regulator CNIL launched an investigation into Worldcoin, fearing that its data collection and storage practices may not be entirely legal.
The regulator is working with its German counterpart, which is directly overseeing the project as Europe’s lead regulator.
The CNIL told the Newswire:
“The legality of the collection appears questionable, as do the conditions under which the biometric data is stored.”
The project is also under investigation in the UK for similar reasons.
The Worldcoin Foundation told CoinDesk via email:
“The Worldcoin Foundation complies with all laws and regulations governing the processing of personal data in the markets where Worldcoin is available, including the General Data Protection Regulation (GDPR).”
The foundation added that Worldcoin is regulated by Europe’s Bavarian Data Protection Supervisory Office (Bayerisches Landesamt für Datenschutz) and is committed to working with regulators around the world to ensure it is fully compliant.
Orbs
Worldcoin recently launched its token and so-called “Orbs” (devices for scanning eyes) on July 24 to collect biometric iris data from willing participants. Those who have their eyes scanned by Orbs are given a unique Worldcoin ID and 25 Worldcoin tokens.
Worldcoin founder Sam Altman claimed that as of July 27, the project was onboarding approximately eight users per second through orbs.
The project has launched 1,500 orbs in several major cities around the world, including the UK, France, and Germany. However, due to unclear regulations, orbs and coins are not currently available in the United States.
The Worldcoin Foundation said it will focus on increasing orbs in jurisdictions that are more welcoming to the cryptocurrency industry than those that remain on the sidelines.
The project has been thriving throughout the second quarter, and despite the project’s privacy and data issues, the token’s launch has been well received by most of the crypto community.
Meanwhile, network activity has surged since launch, with a single-day high of 944,668 transactions hitting an all-time high on July 27, according to Etherscan data.