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News

Worldcoin Continues To Face New Challenge In Germany

August 8, 2023 - Around 2 mins mins to read

Key Points:

  • Germany’s Bafin is probing Worldcoin’s unlicensed operations, shedding light on regulatory concerns.
  • The project’s iris-based digital IDs and free cryptocurrency aim to secure human identity amidst AI advancements.
  • Beyond Germany, French, UK, and Bavarian regulators are also examining its data practices and compliance.
Germany’s financial watchdog, Bafin, is currently conducting an investigation into the digital currency known as Worldcoin, according to a report by the German business daily Handelsblatt on Tuesday.
Worldcoin Continues To Face New Challenge In Germany
Worldcoin Continues To Face New Challenge In Germany 2

The currency, spearheaded by OpenAI’s CEO, Sam Altman, has raised concerns among German authorities due to its lack of licensing.

Bafin, the country’s financial regulator, has taken an interest in scrutinizing Worldcoin. A spokesperson from Handelsblatt confirmed the investigation, although Bafin typically refrains from divulging specifics regarding ongoing inquiries. WLD, a cryptocurrency introduced on July 24th, is at the center of this probe.

“The Bafin is conducting an investigation,” stated a spokesperson. The regulatory body stated that it actively oversees Worldcoin’s operations. If a company seeks to access the German market without proper authorization, such as by offering a website or app in German, Bafin initiates an inquiry. The applicability of a pre-launch license for Worldcoin remains uncertain.

The project’s novel approach involves requesting users submit iris scans as part of a digital identification process, which is accompanied by the offer of free cryptocurrency in select countries.

The project contends that these World IDs will gain significance as artificial intelligence’s influence grows, allowing individuals to verify their human identity over machine-like attributes.

Prior to this, Bavaria’s State Office for Data Protection Supervision began examining the Worldcoin crypto initiative in the previous year, driven by concerns over the potential misuse of sensitive data.

Since its parent company, Tools for Humanity, maintains a subsidiary in Germany, Worldcoin has attracted the attention of the German authorities since November. French and UK regulators have also examined Worldcoin’s collection and utilization of private data.

This inquiry underscores the ongoing scrutiny and regulation surrounding the cryptocurrency space, particularly regarding data protection and regulatory compliance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

BaFin

Germany

OpenAI

Sam Altman

WLD

Worldcoin

Avatar of Harold

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Worldcoin Continues To Face New Challenge In Germany

Key Points:

  • Germany’s Bafin is probing Worldcoin’s unlicensed operations, shedding light on regulatory concerns.
  • The project’s iris-based digital IDs and free cryptocurrency aim to secure human identity amidst AI advancements.
  • Beyond Germany, French, UK, and Bavarian regulators are also examining its data practices and compliance.
Germany’s financial watchdog, Bafin, is currently conducting an investigation into the digital currency known as Worldcoin, according to a report by the German business daily Handelsblatt on Tuesday.
Worldcoin Continues To Face New Challenge In Germany
Worldcoin Continues To Face New Challenge In Germany 4

The currency, spearheaded by OpenAI’s CEO, Sam Altman, has raised concerns among German authorities due to its lack of licensing.

Bafin, the country’s financial regulator, has taken an interest in scrutinizing Worldcoin. A spokesperson from Handelsblatt confirmed the investigation, although Bafin typically refrains from divulging specifics regarding ongoing inquiries. WLD, a cryptocurrency introduced on July 24th, is at the center of this probe.

“The Bafin is conducting an investigation,” stated a spokesperson. The regulatory body stated that it actively oversees Worldcoin’s operations. If a company seeks to access the German market without proper authorization, such as by offering a website or app in German, Bafin initiates an inquiry. The applicability of a pre-launch license for Worldcoin remains uncertain.

The project’s novel approach involves requesting users submit iris scans as part of a digital identification process, which is accompanied by the offer of free cryptocurrency in select countries.

The project contends that these World IDs will gain significance as artificial intelligence’s influence grows, allowing individuals to verify their human identity over machine-like attributes.

Prior to this, Bavaria’s State Office for Data Protection Supervision began examining the Worldcoin crypto initiative in the previous year, driven by concerns over the potential misuse of sensitive data.

Since its parent company, Tools for Humanity, maintains a subsidiary in Germany, Worldcoin has attracted the attention of the German authorities since November. French and UK regulators have also examined Worldcoin’s collection and utilization of private data.

This inquiry underscores the ongoing scrutiny and regulation surrounding the cryptocurrency space, particularly regarding data protection and regulatory compliance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.