Draft Worldcoin Regulation Bill Introduced by Argentine Lawmaker
By Tim Alper
Updated on:
May 1, 2024 19:30 EDT
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Reading Time: 2 minutes
An Argentine legislator has proposed a draft bill that aims to regulate Worldcoin and its activities in Argentina, a country in Latin America. This move comes shortly after Worldcoin announced its plans to expand into Mexico. Some Mexican lawmakers have also called for an investigation into Tools for Humanity, the operator of Worldcoin.
Protecting Consumer Rights is Essential, Says Argentine Lawmaker
According to the official news outlet of the Buenos Aires assembly, the draft bill was initiated by Carlos Puglelli, a member of the Buenos Aires parliament. Puglelli and others have raised concerns about the use of biometric data collected by Worldcoin through its iris-scanning technology, claiming that it is unclear how the company utilizes this data.
Puglelli’s bill suggests the regulation of companies that collect biometric data by scanning people’s irises. He argues that the Buenos Aires authorities should have control over the activities of companies like Worldcoin. Additionally, he calls for more transparency regarding the use of biometric data that users provide to these companies in exchange for cryptocurrency payments.
Worldcoin has gained popularity in Argentina, where it operates more than 50 iris-scanning centers.
Buenos Aires MPs Call for Investigation into Worldcoin
Worldcoin has also attracted the attention of other lawmakers in Buenos Aires. In mid-April, Romina Braga, another member of the Buenos Aires assembly, called for an official investigation into Worldcoin. Braga urged Axel Kicillof, the Governor of Buenos Aires Province, to initiate the investigation and expressed concerns about privacy and data protection.
A Worldcoin retina scanner orb. (Source: Steve Jurvetson [CC By 2.0])
This follows an investigation launched by the national data protection agency into Worldcoin in January of this year.
Puglelli’s bill proposes the establishment of a regulatory framework that governs the collection of biometric data and imposes penalties for any misuse of this data. He explained:
Regulatory Body to Oversee Worldcoin?
If the bill is approved, the Provincial Directorate for the Defense of the Rights of Consumers and Users will be appointed as the supervisor of Worldcoin. The Directorate’s responsibilities will include promoting fair and equitable consumer relations in the digital sphere, as well as ensuring trust and IT security.
According to Criptonoticias, a media outlet, Worldcoin has been operating in Argentina for over a year, with thousands of citizens transferring their biometric data to the company based in the Cayman Islands.
Will the Lawmakers Succeed?
Both Puglelli and Braga have expressed concerns about the unclear use of iris-scanned data by Worldcoin. Puglelli warned that Worldcoin has no legal status in Argentina and is collecting biometric data in a manner that jeopardizes privacy.
It remains to be seen whether the lawmakers’ concerns will dampen public enthusiasm. However, they are not alone in raising these issues. The Buenos Aires Ministry of Production, Science, and Technological Innovation has also examined Worldcoin’s data protection practices.
Mexican lawmakers have also expressed concerns, while government officials in Chile have inspected three addresses associated with Worldcoin to ensure compliance with national regulations.
Data-related concerns have also hindered Worldcoin’s iris-scanning efforts in European countries like Spain, Germany, and France. Additionally, government agencies in East Asian nations such as South Korea and Hong Kong have initiated investigations into Worldcoin.
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