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Vitalik Buterin, the co-founder of Ethereum, recently praised Worldcoin for its efforts to protect user data privacy through cryptography. Buterin acknowledged that Worldcoin has taken privacy critiques seriously and designed their system to be more data-minimal, stating that modern cryptography is truly amazing. However, Buterin had expressed concerns about Worldcoin in October 2023, particularly regarding its fundamental mechanism of verifying human identity through iris scanning. He raised issues about privacy and accessibility, noting that extensive data collected through iris scanning could reveal personal details such as sex, ethnicity, and medical conditions. Buterin also questioned the global accessibility of Worldcoin, stating that it would be challenging to ensure that there is an “Orb” within five kilometers of everyone, even with distributed manufacturing at a larger scale.

Worldcoin’s biometric data collection practices have faced regulatory actions globally, with Portugal’s National Data Protection Commission (CNPD) temporarily halting the platform for 90 days due to concerns over collecting iris and facial scans without adequate consent, particularly from minors. Similarly, Spain’s Data Protection Agency (AEPD) issued a three-month ban on Worldcoin’s data collection, citing similar issues. Legal appeals by Worldcoin were rejected by a local court, upholding the AEPD’s decision. These regulatory actions reflect a growing scrutiny of Worldcoin by regulators in various jurisdictions, including Hong Kong and Kenya, where concerns over privacy risks and biometric data collection have led to investigations and restrictions on the platform’s activities.

Despite Buterin’s earlier concerns, he recently acknowledged Worldcoin’s efforts to protect user data privacy through cryptography. He stated that Worldcoin has done quite a good job of addressing privacy critiques and designing its system to be more data-minimal, highlighting the incredible capabilities of modern cryptography. However, Buterin had previously raised issues about Worldcoin, particularly regarding its use of iris scanning for human identity verification. He expressed concerns about the potential privacy risks associated with the extensive data collected through iris scanning, which could reveal sensitive personal information. Buterin also questioned the global accessibility of Worldcoin, noting the challenges of ensuring widespread distribution of its technology.

Worldcoin’s biometric data collection practices have come under scrutiny from regulators worldwide, with actions taken in Portugal and Spain to halt the platform’s activities due to concerns over privacy and consent issues. Portugal’s CNPD and Spain’s AEPD both issued temporary bans on Worldcoin’s data collection practices, citing violations related to the collection of iris and facial scans without adequate consent, especially from minors. Legal challenges by Worldcoin against these regulatory actions were unsuccessful, leading to the continuation of the bans. These regulatory actions reflect a broader trend of increased scrutiny of Worldcoin by regulators in different countries, including Hong Kong and Kenya, where concerns over privacy risks and biometric data collection have prompted investigations and restrictions on the platform’s operations.

In conclusion, Vitalik Buterin’s recent support for Worldcoin’s efforts to protect user data privacy through cryptography represents a positive recognition of the platform’s initiatives. However, Buterin’s earlier concerns about Worldcoin’s use of iris scanning for human identity verification and the potential privacy risks associated with extensive data collection still raise valid points for discussion. The regulatory actions taken against Worldcoin in Portugal and Spain due to privacy and consent issues highlight the growing importance of data protection and user privacy in the digital age. As Worldcoin continues to navigate regulatory challenges and address privacy concerns, it will be essential for the platform to uphold high standards of data security and user consent to maintain trust and compliance with regulatory requirements.

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