The Spanish court rejected Worldcoin’s request for an injunction against the regulator

WorldCoin, a “global identity and financial network” founded by OpenAI CEO Sam Altman, failed to defend its operation in Spain through legal action. The company submitted an order to the local regulator to stop data collection in the country, but the court could not allow it.

On March 6, Spain's Data Protection Agency (AEPD) issued a temporary injunction banning WorldCoin from collecting data in the country for three months. AEPD intends to use this time to investigate complaints that users in Spain failed to obtain consent and that WorldCoin collected data from minors.

Worldcoin, however, denied the allegations. Cointelegraph sent a statement accusing the EU of “spreading false and misleading claims” and not responding to the company's letters for months.

Related: Worldcoin integrates with Shopify, Mercado Libre, Minecraft, Reddit and Telegram

On the same day, March 6, after freezing its operations in Spain, Worldcoin's parent company, Tools for Humanity, filed a lawsuit against the EIA's order. A request to suspend the regulator's order has been submitted by the Dispute-Administrative Section of the Spanish High Court of Justice. According to Worldcoin representatives, the AEPD ban “contradicts applicable EU law,” including the European General Data Protection Regulation (GDPR).

According to TechCrunch, on March 11, Spain's Supreme Court rejected WorldCoin's request for an injunction, reiterating the priority of “protecting the public interest.” The court questioned the quality of information WorldCoin provided about its data donors' consent.

Spain is not the first country where WorldCoin has faced pressure from regulators. In the year In January 2024, Hong Kong's Office of the Personal Data Privacy Commissioner (PCPD) announced an investigation into the company's local operations, citing “serious risks to personal data privacy”. Before that, the service was discontinued in Kenya and India.

The controversy surrounding Worldcoin stems from the use of biometric scanning devices called “Orbs”. Worldcoin users sign up for the service by downloading an app. They are then directed to the facility that holds the orb, where they must insert their eyes for scanning. Once verified, user accounts are linked to their unique biometric data, which can be independently verified using Worldcoin Services. People who sign up for the service and activate their accounts through the WorldApp application will be paid using Worldcoin's WLD token.