The Bavarian State Office for Data Protection Supervision has been conducting an investigation into Worldcoin, a project led by OpenAI CEO Sam Altman, since November 2022.
The investigation was launched due to apprehensions over the large-scale processing of sensitive biometric data by the project, as reported by Reuters.
Worldcoin, which was launched just last week, requires users to submit their iris scans in exchange for a digital ID and, in certain countries, free cryptocurrency, aiming to establish a novel "identity and financial network".
Michael Will, President of the Bavarian State regulator, expressed concerns about the project's reliance on new and unestablished technologies to process large volumes of sensitive data, as stated in his comments to Reuters.
The project has been attracting users globally, with its shiny spherical "orb" scanning faces at sign-up sites in various countries, including France, Germany, and Spain. According to Worldcoin's website, approximately 2.1 million users have already signed up, with most participating during a two-year trial period.
Privacy advocates have long raised concerns about the mass collection and storage of biometric data, which could potentially lead to increased surveillance and targeting of specific demographic groups.
Several European supervisory authorities have also taken an interest in Worldcoin and have requested information regarding its data collection practices.
The Worldcoin Foundation, based in the Cayman Islands, responded to the investigation, stating that it complies with the European Union's data protection rules and will continue to cooperate with regulatory requests for information regarding its privacy and data protection measures.
The project's legality has also come under scrutiny from the French privacy watchdog, which described the data collection by Worldcoin as "questionable". Additionally, Britain's data regulator has announced plans to make inquiries into the project.