Worldcoin Has 72 Hours to Cease Operations in Spain

Worldcoin (WLD) Forced to Cease Operations in Spain: Price Impact

06 March 2024 16:05 UTC

Spain's data privacy watchdog, the AEPD, has given Worldcoin (WLD) 72 hours to cease collecting citizens' iris scan information.
Worldcoin is not immune to probes by regulators, despite having heavyweight investors like Bain Capital funding its operations.
The price of the WLD token seemed unperturbed, and seems to have settled around the $5.76 mark, with an ascent to $14 possible.

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.

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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.

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.

Worldcoin (WLD) Price Performance. Source: TradingView

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.

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.