Worldcoin Faces Data Privacy Breach In Colombia: Will WLD Coin Value Sink?

The post Worldcoin Faces Data Privacy Breach In Colombia: Will WLD Coin Value Sink? It first appeared on Coinpedia Fintech News

Worldcoin, founded by OpenAI's Sam Altman, could face serious consequences in Colombia. The country's Superintendent of Industry and Commerce (SIC) has initiated formal proceedings against the WorldCoin Foundation and its partner, Tools for Humanity. This action is due to alleged violations of Colombia's personal data protection regulations.

Allegations of data policy violations

WorldCoin, which is involved in collecting personal data through the Orb device, operates in 25 locations in Colombia, including major cities such as Bogotá, Medellin, Cartagena and Barranquilla.

SIC's investigation focuses on Worldcoin and Tools for Humanity's violations of regulations related to personal data protection and privacy policies.

SIC has filed a preliminary charge against Worldcoin, aiming to assess whether the company breached the country's data protection laws. Penalties for Worldcoin include hefty fines, a six-month suspension of data processing activities, or a complete shutdown of operations if found guilty.

String of tests for Worldcoin

WorldCoin is facing a series of allegations around the world related to its data collection practices. European authorities have been investigating the project for possible violations of the General Data Protection Regulation (GDPR) since last year.

Worldcoin operations in Spain have been suspended until the end of this year. Hong Kong recently banned the project's data collection due to privacy concerns, and Portugal previously banned WorldCoin for three months.

Additionally, Argentina has sued WorldCoin for violating consumer laws and is seeking $1.2 million in fines.

Worldcoin (WLD) price performance

Amidst these legal troubles, the market performance of Worldcoin (WLD) has been struggling. However, the Crypto Fear and Greed index reflects bearish sentiment, with WLD continuing its downward trend. It has fallen below key support levels including the 20-day EMA at $1.67, the 50-day EMA at $2.08 and the 200-day EMA at $3.42.

Meanwhile, the price of WLD is currently around $1.71, a slight increase of 8% in the last 24 hours. Despite this short-term swing, the cryptocurrency remains below significant resistance points. Downtrending EMAs suggest that sellers are still dominant, and any upward movement is likely to face strong resistance. For WLD to recover, it needs to close above the 50-day EMA and maintain this level.