The Spanish Data Protection Agency (AEPD) has suspended Worldcoin’s operations in Spain, effective until the end of 2024 or the conclusion of an ongoing investigation. The Bavarian Data Protection Authority (BayLDA) is examining Worldcoin’s data collection practices.
Worldcoin, which grew to 10 million users despite previous restrictions in Portugal, Hong Kong, and other countries, faces significant regulatory challenges. This suspension marks a major regulatory intervention in the cryptocurrency sector.
In response to scrutiny, Worldcoin has enhanced security measures and made its project source code public. The company plans to launch a Layer 2 network based on Ethereum in summer 2024, aiming to improve transaction speeds and scalability.
The outcome of these investigations could set a precedent for data protection and compliance in crypto projects worldwide, influencing future regulatory frameworks.
