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Despite the regulatory hurdles, the project’s WLD token surged 35% this week, from $1.60 on Sept. 19 to $2.16 on Sept. 26.
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South Korea’s personal information watchdog imposed a fine of 1.1 billion Korean won ($829,000) on the Worldcoin Foundation and its affiliate Tools For Humanity (TFH) for violating the country’s laws on personal information protection.
In a plenary session on Sept. 25, the country’s Personal Information Protection Commission (PIPC) announced that it would fine the company $829,000 for violating the Personal Information Protection Act (PIPA).
The regulator also imposed corrective orders and improvement recommendations on the Worldcoin Foundation.
The PIPC said that it started its investigation in February after receiving complaints that the company may be collecting biometric information in exchange for crypto.
Almost 30,000 South Koreans used iris scans
The announcement also said that after the investigation, the privacy watchdog confirmed that the Worldcoin Foundation and the TFH collected information such as iris scans of South Koreans without a legal basis for processing.
PIPC said that almost 100,000 South Koreans downloaded Worldcoin’s application, with almost 30,000 using iris authentication. However, the privacy watchdog said that the company failed to comply with the requirements of the PIPA.
The regulator explained that when the Worldcoin Foundation collected the biometric data, they did not inform the users of the purpose of the collection and retention period as required in the law. The privacy watchdog also stressed that the company did not inform the users that their data would be transferred to foreign countries.
According to the PIPC, the law requires companies to declare where the personal information is being transferred and the name and contact information of the entities receiving their information.
Furthermore, the PIPC also highlighted that the company has not established a procedure for requesting and processing the deletion of sensitive data.
Additionally, the privacy watchdog noted that TFH did not have adequate procedures in place for age verification, which would prevent children under the age of 14 from registering on the application.
Related: Worldcoin denies insider trading and price manipulation allegations
Worldcoin token surges despite regulatory hurdles
Despite the challenges it had faced in South Korea, the project’s native token showed significant gains this week.
Worldcoin token’s 7-day price chart. Source: Cointelegraph Markets Pro
Cointelegraph Markets Pro data shows that the Worldcoin (WLD) token surged from $1.60 on Sept. 19 to a high of $2.16 on Sept. 26. This represents a 35% price increase over the course of the week.
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This article first appeared at Cointelegraph.com News
