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South Korea Slaps Worldcoin with $829,000 Fine Over Privacy Breach

Writer's picture: Blockonome GnomeBlockonome Gnome

Despite regulatory setbacks, Worldcoin's WLD token surges 35%, showing resilience in a challenging market.


South Korea Slaps Worldcoin with $829,000 Fine Over Privacy Breach

South Korea’s Personal Information Protection Commission (PIPC) has fined the Worldcoin Foundation and its affiliate, Tools For Humanity (TFH), a hefty 1.1 billion Korean won ($829,000) for violating personal data protection laws. The decision comes after a months-long investigation, sparked by concerns over the collection of biometric data, including iris scans, from tens of thousands of South Korean citizens.


Announced during a plenary session on September 25, the PIPC ruled that the Worldcoin Foundation had breached the Personal Information Protection Act (PIPA) by collecting sensitive information without the proper legal framework in place. The fine also comes with corrective orders and recommendations for improving the company's data handling practices.


The investigation into Worldcoin, which began in February, was prompted by complaints that the company was gathering biometric data in exchange for cryptocurrency rewards. PIPC's findings confirmed these suspicions, revealing that nearly 100,000 South Koreans downloaded the Worldcoin app, with close to 30,000 undergoing iris scans to authenticate their identities. However, Worldcoin had failed to inform users about the specific purposes of the data collection, how long their data would be stored, or the fact that the data would be transferred to foreign countries—key violations under South Korean law.


"The law is clear: companies must provide full transparency regarding how personal information is collected, where it is sent, and how long it is retained," stated a spokesperson for the PIPC. Additionally, the watchdog noted that the Worldcoin Foundation lacked proper procedures for deleting sensitive data upon request and did not have robust age verification measures to prevent children under the age of 14 from using the app.


The regulatory scrutiny underscores the tension between innovative tech companies and privacy laws. Despite the heavy fine, TFH appears to be taking a cooperative stance. Damien Kieran, Chief Privacy Officer of TFH, responded positively to the ruling, stating, “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."


Interestingly, the regulatory setback hasn’t dampened Worldcoin’s performance in the cryptocurrency market. On the contrary, the project’s native token, WLD, has seen a remarkable 35% surge in its price this week, climbing from $1.60 on September 19 to $2.16 on September 26, according to data from Cointelegraph Markets Pro. This price spike, amidst regulatory challenges, reflects the broader confidence in the project’s long-term vision.


As crypto projects face increasing regulatory hurdles worldwide, Worldcoin’s journey in South Korea highlights the delicate balance between compliance and innovation. Whether the project can navigate these legal waters while maintaining market momentum remains to be seen, but for now, the WLD token’s impressive performance indicates that investors are still betting on its potential.


photo source / Blockonome

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