Colombia’s Superintendence of Industry and Commerce (SIC) has launched an official investigation into Worldcoin Foundation and Tools for Humanity, alleging violations of the country’s data privacy laws.

As per the announcement made on August 21, available here , the regulatory entity, in line with its responsibility to protect personal information, imposed the charges on August 16.

Regulatory probe

The SIC's investigation focuses on determining if the organizations violated Colombian legislation governing the collection and processing of sensitive personal information.

The inquiry aims to ascertain whether Worldcoin Foundation and Tools for Humanity obtained explicit and informed consent from individuals for data collection and if they implemented sufficient data handling and security protocols.

The investigation will also assess whether the companies provided adequate means for addressing grievances and inquiries from data subjects.

If the allegations are found to be true, the SIC could impose substantial penalties, potentially including fines up to 2,000 times the monthly minimum wage, the temporary suspension of related activities for up to six months, or even the permanent closure of operations.

The SIC emphasized its unwavering commitment to protecting citizens’ fundamental rights and strongly advised the public to remain vigilant in safeguarding their personal information. The formal charges are currently under review, and the involved parties have been informed. The decision is final and cannot be appealed.

The ongoing investigation underscores the increasing scrutiny of data practices by tech companies, particularly as they expand their operations worldwide. Worldcoin, aiming to establish a global digital identity system utilizing biometric data, has encountered similar regulatory challenges in other regions, raising concerns about the effectiveness of its data protection measures.

String of challenges

Worldcoin, co-founded by Sam Altman , has faced regulatory challenges globally due to its plan to create a universal digital identity system based on biometric data.

The project initially faced scrutiny in Kenya due to concerns regarding data protection laws, leading to authorities suspending its operations in August 2023. Kenya later concluded its investigation into the project in June, without finding any wrongdoing.

European regulators have also been looking into the project since last year to determine if it breaks the General Data Protection Regulation (GDPR). Germany’s Bavarian State Office is investigating how Worldcoin handles user consent and data, while France’s CNIL is examining whether its practices comply with French privacy laws.

Spain has extended the ban on Worldcoin’s operations in the country until the end of this year , while Hong Kong recently banned its data collection over privacy violation concerns. Portugal has also previously suspended Worldcoin’s operations for a three-month period.

Meanwhile, Argentina has accused the project of violating consumer rights and is seeking $1.2 million in fines .