Newly launched controversial crypto and ID project Worldcoin could face inquiries from UK data regulators as it raises concerns about the privacy and critical security of biometric data, according to a Reuters report.

The Information Commissioner’s Office (ICO) – the UK’s data regulator – has confirmed the launch of a crypto project in the country and said it will investigate and conduct further investigations into data laws. reported Reuters.

When Cointelegraph reached out to the ICO to ask about its reported investigation into Worldcoin, the agency declined to comment. A spokesman for the regulator said they “have not publicly announced anything to confirm or deny that we are dealing with Worldcoin. I will not be able to pass comments until then.’

The digital identification-focused encryption project launched on July 24 and was co-founded by OpenAI CEO Sam Altman. Project it secured $115 million in funding in May from Andreessen Horowitz, Bain Capital Crypto and Distributed Global. Worldcoin registered more than 2 million users during its beta phase despite many common concerns about the nature of the project.

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While these numbers may look impressive, a study by the MIT Technology Review he claimed that most of the first million users were onboarded using “deception, money-gripping and labor exploitation” in developing countries. Several aspects of the project did not sit well with the crypto community, from concerns about the security of users’ biometric data to privacy concerns.

A global database of human IDs issued after an eye scan, paid for with the useless Worldcoin token, linked to all financial transaction data of each individual managed by a centralized non-profit organization collecting sensitive data for KYC/AML.

WHAT COULD BE DONE? https://t.co/8K6R17vBb0

— Anita ⚡️‍ Bitcoin for Justice (@AnitaPosch) July 24, 2023

Aside from the UK inquiry, the native Worldcoin WLD token will not launch in the US, with none of the US-based exchanges such as Coinbase or Kraken listing it. Project developers cited US regulatory concerns as a key reason for the decision. However, many proponents of cryptocurrency believe that it qualifies as an unregistered security.

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