Worldcoin, a “globally inclusive identity and financial network” founded by OpenAI CEO Sam Altman, has failed to defend its operation in Spain through legal action. The company filed an injunction against the local regulator’s order to cease data collection in the country, but the court declined to grant it. 

On March 6, the Spanish Data Protection Agency (AEPD) issued a temporary order prohibiting Worldcoin from data collection in the country for three months. The AEPD intends to use this period for investigating complaints that users in Spain aren’t able to withdraw consent and that Worldcoin has allegedly collected data from minors.

Worldcoin, however, didn’t accept the allegations. It sent Cointelegraph a statement, accusing the AEPD of “circumventing EU law spreading inaccurate and misleading claims” and failing to respond to the company’s letters for months.

Related: Worldcoin integrates with Shopify, Mercado Libre, Minecraft, Reddit and Telegram

On the same day, March 6, after freezing its operations in Spain, Worldcoin’s parent company, Tools for Humanity, filed a suit against the AEPD’s order. A motion to suspend the regulator’s order was presented before the Contentious-Administrative Chamber of the Superior Court of Justice of Spain. According to Worldcoin’s representatives, the AEPD’s ban contradicts the “applicable European Union legislation,” including the European General Data Protection Regulation (GDPR).

According to t TechCrunch report , on March 11, the Supreme Court of Spain denied Worldcoin’s injunction request, reiterating the priority of “safeguarding of public interest.” The court has also doubted the quality of information that Worldcoin provided about the consent of its data donors.

Spain isn’t the first country where Worldcoin has faced pressure from regulators. In January 2024, Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) announced an investigation into the company’s local operations , citing “serious risks to personal data privacy.” Before that, its services were suspended in Kenya and India .

The controversy surrounding Worldcoin stems from its use of biometric scanning devices called “orbs.” Worldcoin users sign up for the service by downloading an app. They are then directed to the nearest facility containing an orb, where they must submit to have their eye scanned. Once verified, user identities are tied to their unique biometric data, which can be verified independently using Worldcoin’s services. Those who sign up for the service and activate their accounts in the World App application are paid using Worldcoin’s WLD token.