Spain to Ban Worldcoin: Report

Spain's data protection regulator, the AEPD, has ordered a halt to the operations of Worldcoin, a cryptocurrency project cofounded by OpenAI's Sam Altman, according to a report by the Financial Times. 

Privacy concerns over its use of eye-scanning technology for data collection is the reason behind the ban. 

Innovative project  

Worldcoin is a digital identification and cryptocurrency platform cofounded by Sam Altman that aims to provide verified digital identities through iris scanning. 

It is coupled with a unique cryptocurrency token and wallet, to distinguish real humans from AI online.

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Worldcoin has attracted significant investment, securing around $250 million from notable backers that include VC giant Andreessen Horowitz.

Last December, it announced a major upgrade that included a cutting-edge verification system. 

Last month, it experienced a massive rally to hit a new record high, leading a broader rally in AI-related cryptocurrencies fueled by Nvidia's strong earnings and optimistic sales forecast.

Growing scrutiny 

However, the venture's high-profile nature and innovative data collection method have not been without controversy. 

In Spain, for instance, consumer complaints emerged as people lined up at Worldcoin stands in shopping centers, which triggered a regulatory backlash. 

This sort of scrutiny is not restricted to Spain. South Korea's privacy regulator is investigating Worldcoin's handling of biometric data, including facial and iris recognition, for potential violations of local data protection laws.

Similarly, regulators in the U.K., Germany and France have had the innovative project in their crosshairs.