- Tools for Humanity fined $830,000 in South Korea due to Worldcoin’s privacy violations.
- Investigations began in March 2024, uncovering improper data collection and transfer practices.
- Worldcoin Foundation failed to inform users about data collection purposes and storage periods.
- Significant fines imposed for both data processing and international data transfer violations.
- Worldcoin’s token (WLD) surged over 17% following the news.
Regulatory Actions and Fines
The South Korean Personal Information Protection Commission has fined Tools for Humanity (TFH) and its project Worldcoin $830,000 for multiple violations concerning personal data collection and transfer. The investigation, initiated in March 2024, revealed several breaches in Worldcoin’s handling of user information.
Investigation Findings
The regulatory body determined that Worldcoin Foundation inadequately informed users about the purpose and duration of storing their scanned iris data. Consequently, a fine of 725 million Korean won (approximately $545,000) was imposed for improper processing of sensitive information. Additionally, another fine of 379 million Korean won (about $285,000) was levied for violations related to international data transfer.
Data Transfer Violations
The investigation highlighted that Worldcoin Foundation and TFH failed to notify South Korean users about the specific destinations of their data, a requirement under local law. Moreover, the foundation did not provide a mechanism for users to delete their iris scan information upon request. TFH also neglected to verify the ages of individuals participating in data collection adequately.
Compliance and Token Surge
Despite the fines, the commission did not ban Worldcoin’s operations in South Korea, provided the company rectifies the identified issues. TFH representatives have agreed to pay the fines and claim to have corrected all violations to meet regulatory standards. Following this news, Worldcoin’s token (WLD) saw a significant increase, rising over 17% in just one day, trading at $2.15 at the time of publication.
Global Regulatory Pressures
This regulatory action in South Korea is part of a broader trend where Worldcoin faces scrutiny in several other regions, including Spain, Hong Kong, Kenya, and Portugal. Additionally, Singaporean police have launched an investigation into the trading of Worldcoin accounts.
In summary, the South Korean regulator’s fine against Tools for Humanity and Worldcoin underscores the importance of compliance with local data protection laws. The incident serves as a reminder for crypto projects to prioritize transparency and user privacy, ensuring they meet the stringent requirements of different jurisdictions.
