Worldcoin, a crypto-based digital identity project co-founded by OpenAI CEO Sam Altman, faces regulatory scrutiny in Germany. The Bavarian State Office for Data Protection Supervision (BayLDA) has mandated that Worldcoin establish a GDPR-compliant data deletion protocol by January 19, 2025. This investigation centers on whether Worldcoin’s World ID technology, which utilizes biometric iris scans, aligns with stringent EU data protection laws. The regulator has raised alarms regarding the risks of processing sensitive biometric data, emphasizing the need for explicit consent from users and compliance with data processing regulations. During the inquiry, Worldcoin halted certain operations across the EU and has faced scrutiny from other countries, including a temporary ban in Kenya over privacy issues. The company's technology aims to create a verified digital identity network but has been criticized for its privacy implications. Despite implementing updates to enhance compliance, the BayLDA has deemed that additional changes are required and has required Worldcoin to delete data collected without sufficient legal basis.

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