Cryptocurrency Worldcoin (WLD) finds itself under scrutiny as South Korea’s Personal Information Protection Commission (PIPC) launched an investigation citing privacy concerns. This development in particular has sparked controversy in both the cryptocurrency community and the wider technology sector, raising questions about the project’s data collection practices and regulatory compliance. Meanwhile, investors are closely monitoring the impact on the price and future prospects of altcoin Worldcoin as the investigation progresses.
South Korea is investigating that altcoin project
South Korea’s PIPC launched an investigation into Worldcoin following complaints about its collection and processing of personal information, particularly regarding facial and iris recognition. In particular, the commission began its investigation on February 29, expressing concerns about possible violations of the Personal Information Protection Act. Meanwhile, PIPC announced the development in a press release today, sparking controversy in the crypto market.
According to PIPC’s press release, Worldcoin members are currently collecting facial and iris recognition information at approximately ten locations in South Korea. The Commission plans to comprehensively examine the collection, processing and potential transfer abroad of sensitive personal data. Meanwhile, the press release stated that if violations are confirmed by the data protection authority, necessary measures will be taken in accordance with the relevant laws and regulations.
Potential impact on price
News of the investigation had an immediate impact on Worldcoin’s price, with a slight decline following an initial increase of 9% in the last 24 hours. Meanwhile, this regulatory review comes at a time when Worldcoin is gaining significant traction in the cryptocurrency market and has highlighted potential risks associated with regulatory compliance and privacy concerns.
Worldcoin, co-founded by OpenAI CEO Sam Altman, is known for its identity-focused approach that uses iris scanning technology through the Orb device for verification purposes. Participants are rewarded with WLD tokens for signing up to the protocol. However, this unique registration process has sparked backlash in various jurisdictions. South Korea has become the latest country to address concerns about data privacy and protection.
Regulators continue to examine cryptocurrencies
Additionally, the investigation by South Korea’s privacy watchdog adds to the regulatory challenges facing Worldcoin and underscores the importance of adhering to strict privacy standards in the cryptocurrency space. As global regulators continue to scrutinize cryptoassets, projects like Worldcoin must navigate a complex regulatory environment to ensure compliance and maintain trust among both investors and users.
Meanwhile, as of press time, the Worldcoin price increased by 4.17% in the last 24 hours to $8.03, and the trading volume remained near the horizontal line at $723.33 million. Notably, the token rose as high as $8.34 this morning before reversing course following the news.
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