Colombian Regulator Accuses Sam Altman’s Worldcoin of Data Policy Violations

Colombia’s Superintendence of Industry and Commerce (SIC) has charged the decentralized identity project Worldcoin and its parent company, Tools for Humanity, with alleged breaches of personal data protection laws, according to a statement released on Tuesday.

The SIC’s notification to Worldcoin marks an initial step in the indictment process, which begins without a formal accusation. The agency aims to determine if the companies have violated Colombia’s personal data protection regulations by collecting sensitive personal data and implementing data processing policies and privacy notices improperly.

Worldcoin, a cryptocurrency startup founded by OpenAI’s Sam Altman, is currently gathering data from individuals using its Orb device at 25 locations across Colombia, including the capital city, Bogota, as well as Medellin, Cartagena, and Barranquilla, according to its website.

Should Worldcoin be found guilty, the SIC could impose penalties ranging from economic sanctions to a temporary suspension of operations for six months, or even an immediate and permanent shutdown.

Several Latin American governments have already begun scrutinizing Worldcoin’s activities. In August, just two months after Worldcoin launched in Ecuador, the country’s central bank reminded the public that “crypto assets are not a currency.”

Additionally, in August 2023, the Argentine Agency for Access to Public Information (AAIP) launched an investigation into Worldcoin to assess the legality of its data collection practices.

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