South Korea’s privacy watchdog Personal Information Protection Commission (PIPC) has ordered the cryptocurrency project, Worldcoin Foundation, and its operating firm, Tools For Humanity Corporation (TFH), to pay 1.1 billion Korean won ($830,000) for alleged non-compliance with data protection laws.
During its 16th plenary session on Wednesday, September 25th, the PIPC issued penalties and corrective actions to the two firms for infringing on the country’s data protection laws.
As reported, the PIPC started probing Worldcoin in February, earlier this year, after receiving complaints about unauthorized biometric data collection in exchange for the firm’s digital tokens, Worldcoin.
After confirming their human identity, users are issued a ‘World ID’ allowing them to set up an online wallet to manage their tokens.
Worldcoin Faces Data Protection Violations
Following the investigation, the PIPC discovered that Worldcoin collected iris information from about 30,000 Korean users out of the 93,463 that downloaded the World App and charged the firm with several violations.
First, the body charged Worldcoin for collecting iris images and information from users without proper consent and notification of the purpose, retention, and use period. Secondly, the crypto project transferred the personal data collected overseas to countries like Germany without properly notifying users.
Furthermore, Worldcoin and Tools for Humanity failed to implement sufficient age verification measures for minors under 14 and also did not provide a clear process for requesting deletion or suspension of iris code data.
Therefore, the PIPC charged Worldcoin Foundation and TFH 725 million won ($545,000) and 379 million won ($285,133) respectively, for violating Korea’s Personal Information Protection Act, on sensitive data processing and international transfer.
Worldcoin and Tools For Humans Corrective Measures
While the PIPC did not ban sensitive data collection in South Korea, it outlined corrective actions for the company and its development team to ensure compliance.
The commission ordered the Worldcoin Foundation to obtain separate consent for collecting sensitive data, use the data collected only for intended purposes, and also provide effective deletion functions.
Meanwhile, the PIPC mandated Tools for Humanity to introduce age verification procedures within the World App and inform users of overseas data transfers.
In a similar development, South Korean prosecutors raided Bithumb and Upbit crypto exchanges following an investigation.
