France’s and Germany’s data regulators are jointly investigating Worldcoin’s data collection methods, specifically focusing on iris scans.

France’s data protection regulatory authority, CNIL, has recently focused on Worldcoin. With a probe into the company’s Paris office this week, Worldcoin is the latest digital currency platform to find itself under stringent regulatory scrutiny in the European Union.

First flagged by CNIL in July, Worldcoin’s data collection methods have been under the spotlight. Concerns revolve around whether the platform’s approach to gathering iris scans for digital IDs aligns with the EU’s General Data Protection Regulation (GDPR).

Worldcoin, a venture with notable co-founders like OpenAI CEO Sam Altman, has openly welcomed discussions about its technology. Despite this openness, the move by CNIL indicates that the EU is ready to enforce data protection rules aggressively.

CNIL isn’t investigating Worldcoin in isolation. The Bavarian Data Protection Authority has aligned with CNIL, amplifying the investigation’s implications. This joint effort accentuates a broader, international commitment to ensuring consistent data protection standards.

Worldcoin has been a point of controversy for its requirement that users provide iris scans to obtain digital IDs and, in some instances, alternative cryptocurrencies. The Worldcoin platform reports more than 2.1 million enrollees, primarily acquired during trials over the past two years.

“The team at Worldcoin welcomes any opportunity to address questions regarding the project’s purpose and technology.”

The Worldcoin Foundation told Reuters

For Worldcoin, which emphasizes security as a core mission, the unfolding investigation is a decisive test. Not just for the platform but also as a harbinger for the cryptocurrency industry at large.

Worldcoin finds itself at a crossroads. As the investigation progresses, the platform’s ability to align its data handling practices with the EU’s stringent legal frameworks will undoubtedly shape its future and potentially serve as a yardstick for the industry.

Bitwise Asset Management has withdrawn its application for a Bitcoin and Ethereum Market Cap Weight Strategy ETF.

Bitwise Asset Management has withdrawn its application for a Bitcoin (BTC) and Ether (ETH) Market Cap Weight Strategy exchange-traded fund. It was initially filed with the U.S. Securities and Exchange Commission on Aug. 3. This decision follows a period of increased optimism in the crypto market after Grayscale secured approval for its own ETF from the SEC.

Bitwise’s Chief Investment Officer, Matt Hougan, had expressed support for the SEC’s approval of crypto ETFs in a previous interview with Bloomberg. The planned ETF was designed to invest in futures contracts for either Bitcoin or Ethereum, guided by their respective market capitalizations. In addition, Bitwise was concurrently collaborating with ProShares to initiate another ETF.

The company’s official statement on the withdrawal noted,

“The Trust no longer intends to seek effectiveness of the Fund and no securities of the Fund were sold, or will be sold, pursuant to the above-mentioned Post-Effective Amendment to the Trust’s Registration Statement.”

This move comes amid a series of delays by the SEC concerning Bitcoin ETF applications from various other financial firms, including WisdomTree, Invesco Galaxy, Valkyrie, VanEck, BlackRock, and Fidelity.

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According to the SEC, the regulatory body has extended its review period for a range of spot Bitcoin ETF applications. It is not expected to finalize its decisions until at least mid-October. Further delays could push this timeline into 2024.

Bitwise has had prior engagements with the SEC, including a 2019 application for a Bitcoin-backed ETF that aimed to track the Bitwise Bitcoin Total Return Index. The index was proposed to offer a broad snapshot of Bitcoin’s value, aggregating data from multiple crypto exchanges. Third-party custodians were planned to hold the Bitcoin to add a layer of physical security.

This withdrawal is not Bitwise’s first; the firm had previously filed and then rapidly withdrawn an application for an Ethereum Strategy ETF earlier this year.

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