Worldcoin (WLD), the cryptocurrency project spearheaded by Sam Altman, has been forced to halt its operations in Spain.
The Spanish data protection regulator, AEPD, has issued a directive demanding the immediate cessation of personal data collection by Worldcoin within the nation. This development signifies a major setback for the initiative, which aimed to distribute tokens to individuals simply for their uniqueness.
Worldcoin (WLD) to Cease Operations in Spain
The AEPD’s “precautionary measure” comes amid growing concerns over privacy risks associated with Worldcoin’s method of verifying identities through iris scans. Given just 72 hours to prove adherence to the order, the regulatory challenge highlights the increasing scrutiny faced by digital currency projects on a global scale.
Worldcoin, despite the backing of heavyweight venture capital firms like a16z crypto and Bain Capital Crypto, now finds itself navigating the complexities of data protection laws.
This regulatory hurdle in Spain casts a shadow over Worldcoin’s future operations and its ambitious goal of creating a new form of digital identity verification. However, its impact on Worldcoin’s market value, particularly its WLD token, has been surprisingly muted.
Read more: What Is Worldcoin? A Guide to the Iris-Scanning Crypto Project
Following a 40% correction from its all-time high of $9.45 on February 25, WLD found a semblance of stability around the $5.76 mark, coinciding with the 50% Fibonacci retracement level.
WLD’s price could subsequently launch from this support at $5.76 to new heights. It could soon reach a target of $14, provided Spain’s sanction does not perturb markets significantly.
Conversely, a breach below the $5.76 support level could see WLD’s price tumble to lower supports at $4.89 or $3.81. Such a drop would amplify the scrutiny on Worldcoin’s ability to navigate regulatory challenges while maintaining investor confidence in its tokenomics.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
As Worldcoin and AEPD have yet to respond to inquiries, the unfolding events in Spain could have broader implications for digital currency projects and their interaction with global data privacy regulations.
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