Originally published on: September 26, 2024
In breaking news, South Korea has taken a firm stance on the protection of personal data by imposing a hefty fine of 1.1 billion Korean won ($829,000) on the Worldcoin Foundation and its affiliate, Tools For Humanity (TFH). This fine comes after the country’s Personal Information Protection Commission (PIPC) found them guilty of violating laws related to personal information protection.
The PIPC made a public announcement following a plenary session on Sept. 25, revealing their decision to penalize the Worldcoin Foundation with a substantial fine for breaching the Personal Information Protection Act (PIPA). In addition to the fine, corrective orders and improvement recommendations were issued to the company by the regulator.
The investigation, initiated in February by the PIPC, was prompted by complaints alleging that the Worldcoin Foundation may have been collecting biometric information in exchange for cryptocurrency. Subsequent findings by the privacy watchdog confirmed that the company had collected iris scans of South Korean individuals without a lawful basis for processing, as per the announcement.
It was disclosed by the PIPC that nearly 100,000 South Koreans had downloaded Worldcoin’s application, with close to 30,000 using iris authentication. However, the company failed to adhere to the requirements outlined in the PIPA.
The regulator stipulates that when collecting biometric data, companies must inform users about the purpose of the collection, retention period, and any data transfers to foreign countries. Failure to communicate this vital information to users is a direct violation of the law.
Moreover, the PIPC underscored that Worldcoin Foundation neglected to establish a proper procedure for sensitive data deletion requests, while TFH lacked adequate protocols for age verification, excluding minors under 14 from the application.
In response to the regulator’s findings, Damien Kieran, Chief Privacy Officer of TFH, expressed gratitude for the dialogue with the company that led to this outcome.
Despite these challenges, Worldcoin’s native token witnessed substantial gains over the past week, underscoring the resilience of the project in the face of regulatory hurdles.
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