The Worldcoin Foundation and Tools for Humanity have been penalized by South Korean authorities for unlawfully collecting and transferring biometric data.

On September 26, the Personal Information Protection Commission announced a fine of 1.1 billion Korean won (approximately $850,000) against Worldcoin and its partner, Tools for Humanity.

The privacy watchdog initiated an investigation into Worldcoin following complaints and media reports suggesting that the project was gathering biometric data in exchange for cryptocurrency without obtaining proper consent or a legal basis.

Worldcoin has conducted iris scans on around 30,000 individuals in South Korea. The investigation revealed that both the Worldcoin Foundation and Tools for Humanity, which oversees the World App cryptocurrency wallet, breached South Korean laws by collecting iris data from nearly 30,000 users without appropriate consent.

Moreover, Worldcoin transferred this biometric information overseas without notifying users about the recipient countries or providing necessary contact details, as mandated by local laws. The commission also pointed out that the Worldcoin Foundation did not adequately inform users about the data's purpose, retention period, and other essential information. Initially, the consent form was only available in English, which hindered local users' understanding until a Korean version was made available in March.

In its defense, Worldcoin claimed that the iris code data was used solely to prevent duplicate registrations and was anonymous, thus not identifying individuals. However, the commission dismissed this argument, stating that iris code data is unique, unchangeable, and directly associated with individuals.

Worldcoin's contentious iris scanning practices have attracted scrutiny from regulatory bodies in countries such as India, Hong Kong, and Germany.
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