Worldcoin Project Under UK Regulatory Scrutiny: A Justified Move?

After Sam Altman’s ChatGPT made a significant impact during its launch, his cryptocurrency venture, Worldcoin, appears to be following a similar path. Shortly after its launch, Worldcoin gained substantial popularity. While this is undoubtedly advantageous, the fact that it has attracted the attention of regulators in the United Kingdom is a cause of concern.

According to a recent report, the Information Commissioner’s Office [ICO], the data regulator of the U.K., has taken notice of the Worldcoin launch. The regulator stated that it will thoroughly review the project and conduct further inquiries to assess its compliance with data laws. An ICO spokesperson said,

“We note the launch of Worldcoin in the UK and will be making further inquiries.”

On Monday, July 24, Worldcoin was officially launched with a user base of two million participants from its trial phase. The crypto project has expanded its iris-scanning operations to 20 countries, with locations in London being among them.

Crypto Community Pushes Back

While many praised the project for its uniqueness compared to existing ones, there were some who expressed concerns. Cosine, the founder of SlowMist, a security platform, belonged to the latter group. He referred to Worldcoin as a potentially “evil creation” if it were to succeed, although he also acknowledged that it has a high probability of failure. Cosine shared his thoughts on Twitter [now called X] and urged the community to exercise with a lot of “vigilance.”

Vitalik Buterin, the co-founder of the Ethereum network, also commented on the launch of Sam Altman’s Worldcoin. He expressed that the project had significant challenges and highlighted that it would likely require several years to work. Pseudonymous crypto influencer ZachXBT in a series of tweets explained their issues with Worldcoin. The influencer said,

“Most alarming to me is how the WorldCoin team has boasted about how many users they have. When in reality they have been exploiting people in developing countries.”

They referred to a story published in April 2022 by MIT Technology Review, which revealed the company’s use of deceptive marketing practices, collection of more personal data than disclosed, and failure to obtain genuine informed consent.

The remarks made by influential figures in the industry could have negative consequences for the Worldcoin project.

Also Read: Vitalik Buterin Shares His Concern with Sam Altman’s Worldcoin

Worldcoin: WLD Token’s ‘Wild’ Slump

After a notable 69% surge upon its launch, WLD witnessed a subsequent decline. Currently, the asset is trading at $2.12, marking a 16.2% drop. It is worth mentioning that the token recently reached a low of $1.91. Presently, WLD is trading 35% below its all-time high of $3.30.

Also Read: Worldcoin’s WLD Token Registers 69% Surge Shortly After Release