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South Korea has fined the Worldcoin Foundation and Tools for Humanity (TFH) around $829,000 for breaking the country’s data privacy rules. The fine was issued by the Personal Information Protection Commission (PIPC) on September 25.
Worldcoin is the crypto project launched by Sam Altman, ChatGPT cofounder, and the project objective is to digitise the irises of people in an attempt to create a unique identification system.
Why They Were Fined
Earlier this year, the PIPC started investigating Worldcoin after complaints that they were collecting iris scans from users in exchange for crypto. The investigation confirmed that about 30,000 South Koreans shared their iris data, but the company didn’t properly explain why they were collecting it or that it would be sent to other countries.
What Worldcoin Did Wrong
Worldcoin didn’t follow the rules. They didn’t tell users why they were collecting iris scans or how long they would keep the data. They also failed to inform users that their information would be sent abroad. In South Korea, companies have to be clear about where personal data is going and who will handle it.
Other Issues
The PIPC also found that Worldcoin didn’t set up a way for people to request the deletion of their data, and they didn’t check users’ ages, which could have allowed children under 14 to sign up without any restrictions.
Worldcoin’s Response
TFH said they were happy with the outcome after discussing the matter with the PIPC. Damien Kieran, TFH’s Chief Privacy Officer, said they remain committed to protecting user privacy and following the rules.
