Bavarian Data Protection Authority Orders World to Delete Biometric Data
The Bavarian State Office for Data Protection (BayLDA) has ordered World (formerly Worldcoin) to delete biometric data collected from users due to violations of the General Data Protection Regulation (GDPR). The ruling has led to a legal battle, with World appealing the decision.
BayLDA asserts that World’s data collection practices, including iris scans, lacked a sufficient legal basis and violated GDPR. The regulator requires the company to implement a deletion procedure compliant with privacy laws and ensure explicit user consent for future data collection. World contends that the ruling is based on outdated systems and technologies, claiming its current operations comply with GDPR requirements.
The investigation began in early 2023 and concluded recently, with BayLDA publishing its findings. World argues that its updated practices address regulatory concerns while continuing to challenge the order. This situation highlights the tension between evolving technologies and stringent European privacy laws.
This dispute could significantly affect World’s operations in the European Union, known for its strict data protection standards. Critics argue that this legal challenge undermines the company’s identity verification model, potentially hindering its development in the region.
World, a digital identity platform, collects biometric data like iris scans to create a global identity system. Despite rebranding in October, it faces ongoing scrutiny from regulators and market volatility. Its native token, WLD, experienced a brief surge after the U.S. elections but quickly lost momentum. The token's uncertain future reflects the company's challenges in navigating regulatory landscapes.
Germany has adopted a stricter approach to cryptocurrency and digital assets recently. In July, the government sold its entire Bitcoin holdings and initiated a crackdown on crypto exchanges, increasing regulatory pressure that complicates World’s market position.
Despite these legal setbacks, World shows no signs of retreating. The appeal process may delay the enforcement of BayLDA’s order, allowing the company to continue operations temporarily. However, the long-term outcome of this dispute remains uncertain. The effectiveness of World’s efforts to address privacy concerns in satisfying regulators is yet to be determined.
This case underscores the growing scrutiny of biometric data collection and the challenges tech companies face in balancing innovation with compliance. The resolution of this legal battle could have significant implications for digital identity platforms and the broader cryptocurrency ecosystem.