As a seasoned crypto investor with a keen eye for privacy and regulatory compliance, I must say this news about Worldcoin’s fine from South Korea’s PIPC has caught my attention. Having witnessed numerous projects come and go, it’s always disheartening to see one that seems promising falter due to oversights in data handling and regulatory compliance.
The Korean Data Privacy Authority, known as the Personal Information Protection Commission (PIPC), has penalized Tools for Humanity, the creators of the Worldcoin initiative, due to their breach of South Korea’s data protection regulations.
The commission declared that a fine of approximately 1.1 billion Korean won, which is equivalent to around $830,000, was imposed on the company due to accusations of improperly handling personal data and violating rules regarding international data transfers.
The main issues revolved mostly around gathering and shifting confidential biometric information, specifically iris scans, often done without the required approval and notice.
More Details On The Matter
In a statement published on September 26, the Privacy and Innovation Policy Committee revealed that Worldcoin failed to clearly explain to users why they were required to share their iris scans or how long this data would be kept on file.
Prior to March 22, the project didn’t offer a Korean version of its consent form regarding biometric data collection, which made it challenging for users in South Korea to comprehend their agreement.
As a result of their improper handling of confidential data and subsequent transfer of this data to foreign parties, the project’s foundation was penalized with a fine amounting to 725 million won (roughly $545,000).
As a crypto investor, I’ve learned that even tech companies like Tools for Humanity (TFH) aren’t immune to the consequences of non-compliance with regulatory standards. In this case, they were hit with a fine of approximately $285,133 (379 million won) due to their failure to adhere to local regulations governing international data transfers. It serves as a reminder that staying compliant is crucial in the ever-evolving landscape of technology and finance.
According to the PIPC report, both Worldcoin and TFH didn’t clearly inform users about the destination of their personal data and neglected to reveal details like the names and contact info of the recipients, as required by the relevant privacy laws in South Korea.
Furthermore, it came to light that Worldcoin lacked a clear process for users to demand removal of their iris information. Similarly, it was disclosed that Tools for Humanity failed to thoroughly confirm the ages of minors below 14 years old until April 2024, further stoking privacy concerns.
The Catch And Worldcoin Response
Although there were some concerns, as stated in the press release, the Personal Information Protection Commission (PIPC) did not impose an outright ban on Worldcoin’s collection of sensitive biometric data in South Korea. Instead, they suggested that the project could carry on with its data collection activities once the mentioned issues are addressed and resolved.
It was revealed that the Proof-of-Stake Investigative Panel Commission (PIPC) had started examining Worldcoin and TFH as early as this year. According to the statement, this investigation commenced some time ago.
In February of this year, the Personal Information Protection Commission launched an investigation after receiving complains and seeing news reports about “Worldcoin” allegedly gathering biometric data without consent in return for digital currencies.
Following the decision, TFH indicated their intent to cooperate and emphasized that they’ve already addressed the concerns raised by the regulatory bodies.
In a press announcement, the company expressed their approval of the PIPC’s verdict and clarified that the issues pointed out stemmed from the preliminary information shared at the time of Worldcoin’s debut in South Korea.
Based on the statement from the company, it appears that the PIPC’s examination found that Worldcoin’s activities, including the utilization of their “Orb” gadget for confirming user identities, now align with the nation’s privacy regulations.
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2024-09-27 15:42