Ezra Reguerra12 hours agoSouth Korea fines Worldcoin for violating personal protection lawsDespite the regulatory hurdles, the project’s WLD token surged 35% this week, from $1.60 on Sept. 19 to $2.16 on Sept. 26.918 Total views7 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onUpdate (Sept. 26, 2:10 pm UTC): This article has been updated to add comments from Damien Kieran from Tools For Humanity.
South Korea’s personal information watchdog imposed a fine of 1.1 billion Korean won ($829,000) on the Worldcoin Foundation and its affiliate Tools For Humanity (TFH) for violating the country’s laws on personal information protection.
In a plenary session on Sept. 25, the country’s Personal Information Protection Commission (PIPC) announced that it would fine the company $829,000 for violating the Personal Information Protection Act (PIPA).
The regulator also imposed corrective orders and improvement recommendations on the Worldcoin Foundation.
The PIPC said it started its investigation in February after receiving complaints that the company may be collecting biometric information in exchange for crypto. Almost 30,000 South Koreans used iris scans
After the investigation, the privacy watchdog confirmed that the Worldcoin Foundation and TFH collected information such as iris scans of South Koreans without a legal basis for processing, according to the announcement.
PIPC said that almost 100,000 South Koreans downloaded Worldcoin’s application, with almost 30,000 using iris authentication. However, the privacy watchdog said the company failed to comply with the requirements of the PIPA.
The regulator explained that when the Worldcoin Foundation collected the biometric data, it did not inform users of the purpose of the collection and retention period, as required by law. The privacy watchdog also stressed that the company did not inform users that their data would be transferred to foreign countries.
According to the PIPC, the law requires companies to declare where personal information is transferred and the name and contact information of the entities receiving the information.
Furthermore, the PIPC also highlighted that the company has not established a procedure for requesting and processing the deletion of sensitive data.
Additionally, the privacy watchdog noted that TFH did not have adequate procedures in place for age verification, which would prevent children under the age of 14 from registering on the application.
Meanwhile, the TFH welcomed the regulator’s findings and said that they were the result of a conversation between the regulator and the company. Damien Kieran, the chief privacy officer of TFH, said:"We are gratified by the PIPC"s findings, which validate our unwavering commitment to user privacy and data protection. This outcome is the result of months of constructive dialogue and demonstrates that innovation and regulatory compliance can go hand in hand."
Related:Worldcoin denies insider trading and price manipulation allegationsWorldcoin token surges despite regulatory hurdles
Despite the challenges it had faced in South Korea, the project’s native token showed significant gains this week. Worldcoin token’s seven-day price chart. Source: Cointelegraph Markets Pro
Cointelegraph Markets Pro data shows that the Worldcoin (WLD) token surged from $1.60 on Sept. 19 to a high of $2.16 on Sept. 26 — a 35% price increase.
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