The Worldcoin (WLD) crypto project is under scrutiny in Argentina, with authorities in the province of La Rioja launching a probe into its operations, citing concerns that the project may be taking advantage of growing poverty in the country. The province’s Cybercrime-fighting Executive Unit has taken action against the company, closing down one of its locations and seeking to prohibit Worldcoin from operating in the province. The unit has accused Worldcoin of collecting sensitive information such as iris patterns, which poses a risk to the security and privacy of individuals in La Rioja. The probe comes as WLD adoption rates continue to soar in Argentina, with plans to establish 50 Worldcoin centers across the country.
Argentina’s provinces, including Buenos Aires, are also expressing concerns about Worldcoin operations, with lawmakers calling for legislation to regulate the project and agencies citing exploitative clauses in its contracts. Buenos Aires authorities have warned that Worldcoin operators could face fines of up to $1.15 million. The regional government of Buenos Aires has initiated several investigations into Worldcoin operations, and it is reported that at least three more Argentine provinces are planning to launch probes. The head of La Rioja’s Cybercrime-fighting Executive Unit highlighted the importance of protecting citizens’ personal data, especially in relation to the use of the Worldcoin Orb device for iris scans.
The head of the Cybercrime-fighting unit in La Rioja also expressed concerns about minors being involved in Worldcoin activities, pointing out that some individuals scanning their irises at Worldcoin centers have brought their children, which poses a serious risk. Worldcoin has been criticized for targeting areas with economic need and taking advantage of vulnerable populations. Similar concerns were raised in Chile earlier in the year, prompting Worldcoin operators to pledge to verify the ages of individuals undergoing iris scans at their centers. Reports indicate that thousands of Argentinian citizens have visited Worldcoin centers this year, with an unofficial reselling industry emerging where WLD recipients exchange their coins for fiat at discounted rates.
Despite the concerns raised by provincial authorities in Argentina, Worldcoin executives have expressed their intention to expand operations in the country, with plans to establish more than 50 centers in various cities and hire additional employees. The company has engaged in discussions with central government officials, including President Javier Milei, to address privacy concerns and alleviate fears among regulators. However, the increasing scrutiny from provincial governments highlights the challenges that Worldcoin may face as it seeks to expand its presence in Latin America. As the investigation into Worldcoin’s activities continues, the project must navigate the regulatory landscape and address the privacy and security concerns raised by local authorities.
