The provincial government of Buenos Aires has recently taken a strong stance against cryptocurrency platform Worldcoin, accusing it of violating consumer protection laws through its user agreement. The government asserts that Worldcoin’s agreement contains “abusive clauses” that give the company the power to interrupt services without providing any form of repair or reimbursement to its users.
One of the key points raised by the government is that Worldcoin forces users to relinquish their rights to collective complaints and subjects them to the laws of the Cayman Islands, a practice that goes against Argentina’s own Civil and Commercial Code. Additionally, any disputes that may arise must supposedly be resolved through arbitration in California, further disadvantaging users in Argentina.
Concerns with Data Storage and Deletion
The government’s audits of Worldcoin revealed further concerns, including the absence of an age disclaimer for users under 18 and the international storage of sensitive data about Argentine users in Brazil. Of particular worry is the collection and handling of biometric data, specifically data obtained from the faces and eyes of users from Argentina. Questions have been raised about Worldcoin’s ability to properly delete this biometric data, casting doubt on the company’s data protection practices.
If proven guilty of these allegations, Worldcoin could face a hefty fine of up to 1 billion Argentine pesos ($1.2 million). While the firm is currently only facing the fine, it is crucial for Worldcoin to address and rectify these issues promptly to avoid further legal consequences. The accusations brought against Worldcoin by Buenos Aires echo similar actions taken by EU countries such as Spain and Portugal, who have filed charges against the company for similar violations regarding data collection, user consent, and data ownership.
In response to the allegations, Worldcoin has maintained that its operations are fully legal, a claim that is contradicted by the findings of the government’s audits. The platform has also announced intentions to improve transparency, a move that has garnered praise from prominent figures in the cryptocurrency industry, including Ethereum creator Vitalik Buterin. Worldcoin, founded by Sam Altman, CEO of OpenAI and chairperson of Tools for Humanity, faces mounting pressure to address the concerns raised by the provincial government of Buenos Aires in order to operate in compliance with local regulations.
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