The cryptocurrency Worldcoin (WLD) finds itself under scrutiny as South Korea’s Personal Information Protection Commission (PIPC) launches an investigation citing privacy concerns. Notably, this development has sparked discussions in both the cryptocurrency community and the broader technology sector, raising questions about the project’s data collection practices and regulatory compliance.

Meanwhile, as the investigation unfolds, investors are closely monitoring the impact on Worldcoin’s price and its future prospects.

South Korea Probes Worldcoin Amid Privacy Concerns

South Korea’s PIPC has initiated an investigation into Worldcoin following complaints regarding the collection and processing of personal information, particularly related to facial and iris recognition. Notably, the commission started its probe on February 29, expressing concerns over the potential violations of the Personal Information Protection Act.

Meanwhile, PIPC has announced the development in a press release today, sparking discussions in the crypto market.

According to the PIPC’s press release, Worldcoin affiliates are currently collecting facial and iris recognition information at approximately ten locations in South Korea. The commission plans to thoroughly examine the collection, processing, and potential overseas transfer of sensitive personal data.

Meanwhile, if violations are confirmed by the data protection authority, it will take appropriate action in accordance with relevant laws and regulations, the press release showed.

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Potential Impact On Price

The news of the investigation has had immediate repercussions on Worldcoin’s price, with a slight retreat observed after an initial 9% surge in the last 24 hours. Meanwhile, this legal scrutiny comes at a time when Worldcoin has been gaining significant traction in the cryptocurrency market, underscoring the potential risks associated with regulatory compliance and privacy concerns.

Notably, Worldcoin, co-founded by OpenAI CEO Sam Altman, is known for its identity-focused approach, utilizing iris scanning technology through the Orb device for verification purposes. Participants are rewarded with WLD tokens in exchange for signing up to the protocol.

However, this unique sign-up process has raised eyebrows in various jurisdictions, with South Korea being the latest to address concerns about data privacy and protection. Besides, the investigation by South Korea’s privacy watchdog adds to the regulatory challenges faced by Worldcoin, highlighting the importance of adhering to stringent privacy standards in the cryptocurrency space.

As global regulators continue to scrutinize digital assets, projects like Worldcoin must navigate a complex regulatory landscape to ensure compliance and maintain trust among investors and users alike.

Meanwhile, as of writing, the Worldcoin price was up 4.17% in the last 24 hours to $8.03, with its trading volume remaining near the flatline at $723.33 million. Notably, the token touched a high of $8.34 this morning before reversing its course following the news.

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The post Breaking: South Korea Probes Worldcoin Citing Privacy Concerns, WLD Price Dip Ahead? appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am