Argentine regulators have imposed a large fine on the Worldcoin cryptocurrency project for abusive provisions in its user agreement.
World Coin (WLD) is a popular cryptocurrency project in this cryptocurrency sector. The project entered the cryptocurrency space based on the concept of decentralized identity verification. OpenAi founder Sam Altman is the founder of WorldCoin and believes WorldCoin will help future internet users and businesses easily distinguish between humans and AI bots.
With the help of a device called Orb, the Worldcoin protocol collects users' biometric information. However, although the WorldCoin project team has always maintained that it does not use the collected data but the protocol will use that data in a decentralized environment in the future, many experts have repeatedly questioned the safety of people's sensitive data.
Some security experts believe that a minor hack or any kind of exploit of the WorldCoin protocol is likely to not only lead to the loss of users' sensitive data, but also huge financial losses.
Since the launch of this cryptocurrency project, many government agencies in several countries have opposed it, citing safety concerns for citizens due to identity theft.
The Ministry of Production, Science, Technology and Innovation of the Buenos Aires province issued an indictment against Worldcoin following an investigation by the provincial Consumer Rights Protection Department.
Our investigation found that some of the contracts users signed were unfair or harmful. This means that there are clauses in the contract that may not treat users fairly or may abuse them in some way. So Argentina is stepping in to solve these problems.
The investigation also found that the company did not provide any guidelines or restrictions for users over 18 years of age. Coin users around the world have reportedly collected data stored by a company in Brazil.
Following any concerns related to the WorldCoin protocol, Worldcoin could now face a fine of up to 1 billion pesos, or $1.2 million.
WLD price action
Despite this bad news, the trading price of Worldcoin (WLD) did not show a downward trend.
The current trading price of this cryptocurrency is 5.5% over the last 24 hours.
Also read: South Korean youth turn to cryptocurrencies as trust in national pension system dwindles.