The Worldcoin (WLD) crypto project has come under scrutiny in Argentina, with authorities in the province of La Rioja launching an investigation into the company’s operations. The Cybercrime-fighting Executive Unit in La Rioja has closed down one of the company’s locations and is seeking to prohibit Worldcoin from operating in the province. The unit has accused the company of collecting sensitive information such as iris patterns, which poses a risk to the security and privacy of individuals in the region. The probe comes amidst the rapid adoption of the Worldcoin token in Argentina, with plans to open 50 Worldcoin centers in over 10 cities and hire 50 new employees in the country.
The provincial governments in Argentina, including Buenos Aires, have expressed concerns about Worldcoin’s operations. Lawmakers in Buenos Aires are calling for WLD-policing legislation due to what they perceive as exploitative clauses in contracts with clients. Buenos Aires authorities have indicated that Worldcoin operators could face fines of up to $1.15 million for their activities. Additionally, at least three more Argentine provinces are reportedly planning to launch investigations into Worldcoin operations.
The head of La Rioja’s Cybercrime-fighting Executive Unit, Silvina Santángelo, has raised concerns about Worldcoin’s practices, particularly regarding the scanning of irises. Authorities are worried about minors being taken advantage of by Worldcoin, as some individuals have brought their children to have their irises scanned. Santángelo highlighted the risks associated with the Worldcoin Orb, which is used for identity verification and is considered more effective than fingerprints. The unit is particularly concerned about the economic need of poorer individuals being exploited by Worldcoin.
Authorities in Chile had similar concerns earlier in the year, prompting the Worldcoin operator to pledge to verify the ages of individuals scanning their irises at its centers. Reports indicate that thousands of Argentinian citizens have visited Worldcoin centers this year, leading to an unofficial reselling industry where WLD recipients exchange their coins for fiat currency at a fraction of their market value. The growing popularity of Worldcoin in Latin America has raised alarm bells in various provinces in Argentina, with concerns about privacy and exploitation leading to calls for legislative action and investigations.
The rapid expansion of Worldcoin in Argentina has prompted provincial governments to take action to protect citizens’ data and privacy. The pushback against Worldcoin’s activities reflects concerns about the collection of sensitive information such as iris patterns and potential exploitation of vulnerable populations. The scrutiny from authorities in La Rioja and Buenos Aires, as well as plans for further investigations in other provinces, highlights the regulatory challenges facing the crypto project in Argentina. Despite its intentions to establish a strong presence in the country, Worldcoin is facing mounting pressure to address privacy and security concerns as it continues to expand its operations in the region.
