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Worldcoin Pushback Sees Firm Change the Way it Collects Data in Chile

05.07.2024
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Tools For Humanity, the operator of Worldcoin (WLD), will change the way it collects data in Chile after legal challenges.

The Spanish-language media outlet Criptonoticias reported that Tools For Humanity will now bar “children and adolescents” from handing over biometric data in exchange for WLD tokens.

A graph showing Worldcoin prices over the past seven days.
Worldcoin prices over the past seven days. (Source: CoinGecko)

Worldcoin Pushback: Firm to Start Checking Chilean Users’ Ages

Astrid Vasconcellos, the head of communications and marketing for Tools For Humanity Latin America at Tools For Humanity, said the firm had “made changes” to the way it operates “following criticism and controversy.”

Worldcoin launched its Chile operations in July last year in Chile, with uptake high in many parts of the country.

Lawyer Filed Key Case at Appeals Court

Media outlets reported “long queues” forming at Chilean iris-scanning centers. However, the firm has faced pushback from the legal community over its decision to allow teenagers to use Orb scanners.

This has “sparked a controversy” in the nation, the media outlet noted.

The Chilean lawyer Rodrigo Lagos filed a case at the Santiago Court of Appeals in March this year after learning that his 17-year-old daughter was allowed to scan her iris “without her parents’ consent.”

This case came at a time when international scrutiny of Worldcoin operations and data privacy concerns were heightening.

Watchdogs and politicians in Europe, Africa, and Asia have stepped in. Elsewhere in Latin America, lawmakers have also called for Worldcoin-related regulations.

Chilean authorities thus followed suit. They began monitoring the firm in April to “ensure that consumers are fully informed about how their data will be used.”

Tools for Humanity, a tech company co-founded and chaired by OpenAI head Sam Altman, has recruited Damien Kieran to be its first chief privacy officer. https://t.co/MEzQkBfNST

— Bloomberg Law (@BLaw) July 2, 2024

ID Checks Now Compulsory at Chile Centers

However, Worldcoin appears keen to put an end to these concerns by shoring up its age- and ID-verification procedures. Vasconcellos explained:

“Previously we did not verify the age of [the people who use our centers]. Now, before you enter a [center], you have to present valid ID documents. The reason we didn’t do this before is that the fundamental pillars of the project include privacy and security.”

Vasconcellos continued, saying that the firm “didn’t want to confuse people” by “making think that we were cross-referencing personal data with iris scans.” She added:

“We have learned that we do need to verify the [age of] people who [use the centers]. It is not enough to take people’s word.”

Worldcoin operates iris-scanning centers in the capital Santiago de Chile, as well as Valparaiso, Rancagua, and Concepción.

Valparaiso Port, Chile.
Valparaiso Port, Chile. (Source: Luigi Bosca [CC BY-SA 3.0])

1% of Chileans Have Scanned Their Irises

The firm says that it has successfully scanned “more than 1% of the Chilean population.”

Vasconcellos insisted that the firm does not retain images of the irises it scans, rather holding on to individual “iris codes.” Iris images, she explained, are “automatically deleted.” The Tools For Humanity executive concluded:

“The goal of the project is to create a humanity base: a network of humans. This will help identify who is human and who is not. There is a lot of misinformation about our project out there.”

Chile’s economy contracted for a third straight month in May as a rebound from last year’s stagnation falters almost as soon as it began, adding to pressure on policymakers to continue interest-rate cuts. https://t.co/WRtpTcmRCE

— Bloomberg Markets (@markets) July 1, 2024

Company Admits Worldcoin Project Is ‘Complex’

Vasconcellos noted that “perhaps” some of this was her company’s “fault,” as the project is “quite new and complex.”

Worldcoin pushback continues internationally. In late June, a UK regulator launched a probe into the firm’s operations.

However, Tools For Humanity scored a victory in Kenya last month when police dropped an investigation into the company’s centers.

The post Worldcoin Pushback Sees Firm Change the Way it Collects Data in Chile appeared first on Cryptonews.

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CryptoMediaClub covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.

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