Worldcoin Faces Regulatory Challenges Amid Global Expansion Plans

According to Cointelegraph, World, the digital identification project led by OpenAI CEO Sam Altman, has successfully raised $135 million from venture capital firms Andreessen Horowitz and Bain Capital Crypto. The funding aims to enhance the network of iris-scanning orbs and infrastructure within the United States and expand its global reach. The company announced in April its intention to operate in six U.S. cities, with plans to increase coverage worldwide. World has issued over 12.5 million World IDs across more than 160 jurisdictions, establishing "proof of personhood" through biometric data collection. However, the project faces significant regulatory challenges and bans in several countries. Critics argue that offering financial incentives for biometric data collection compromises informed consent, raising ethical concerns about centralized digital ID systems and data privacy. In January, Brazil's National Data Protection Authority (ANPD) ordered World to cease operations in the country, citing concerns over incentivizing biometric data collection through cryptocurrency payments. The ANPD upheld the ban in March, emphasizing the company's business model of exchanging cryptocurrency payments for biometric data. World risks daily fines of 50,000 Brazilian reais ($8,851) if it continues operations in Brazil. Similarly, Indonesia's Ministry of Communications and Digital (Komdigi) suspended World's business license on May 4, accusing some subsidiaries of failing to register as digital asset service providers under the Electronic System Operator Certificate Registration (TDPSE) framework. Komdigi has initiated an investigation and plans to meet with subsidiary representatives to address the issue. These bans follow a December 2024 directive from the Bavarian State Office for Data Protection Supervision (BayLDA), a German regulator, which demanded World comply with European Union data protection standards. The directive requires World to offer individuals the option to easily delete their biometric data from the network, highlighting ongoing scrutiny of the project.