Worldcoin Entities Fined $860,000 for Violating South Korean Privacy Laws

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Hongji Feng

Author

Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX (Huobi Global),…

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Last updated:

September 26, 2024 10:30 EDT

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The Worldcoin Foundation and its partner, Tools for Humanity (TFH), were fined a total of $860,000 by South Korea’s Personal Information Protection Commission (PIPC) on Thursday for violations related to the collection and transfer of biometric data.

According to the announcement published by the PIPC, the organizations were penalized for improperly collecting iris data without adequate consent and for failing to inform users about the transfer of their data abroad.

South Korea Fines Worldcoin Foundation and TFH

The investigation, initiated in February, found that the Worldcoin Foundation and TFH collected sensitive biometric information from nearly 30,000 individuals in South Korea without meeting the legal requirements for data processing.

The Commission highlighted that the information provided to users about the data collection and its purpose was insufficient and only available in English until March 2024, which further contributed to the lack of proper consent.

Both parties were also criticized for not having a robust deletion process for iris data and for failing to implement age verification procedures for users under 14.

In response to the violations, the Worldcoin Foundation and TFH have been instructed to obtain separate and explicit consent for the processing of sensitive data, to ensure data is not used beyond its original purpose, and to enhance their data deletion capabilities upon user request.

The commission emphasized the importance of compliance with data protection laws, especially as the use of biometric data becomes more prevalent.

World ID Verification Expands to Three More Countries

Worldcoin has recently expanded its World ID verification services to Guatemala, Malaysia, and Poland, targeting the demand for advanced methods to distinguish between human users and bots in cyberspace.

The organization stated that several surveys conducted in various regions have indicated the growing demand for human verification services, responding to new threats posted by AI-powered bots.

South Korea’s PIPC decision sends a clear message: compliance with data protection laws is non-negotiable.

For Worldcoin and TFH, correcting these missteps will be essential as they pursue global expansion.