South Korea’s Personal Information Protection Commission (PIPC) has fined cryptocurrency project Worldcoin and its developer Tools For Humanity 1.1 billion Korean won ($830,000) for alleged violations in the collection and transmission of personal data.

According to PIPC, Worldcoin management failed to properly inform its customers about the purpose of iris scanning and the storage period for this data. The agency stated that by March 22, the Worldcoin Foundation had not translated the consent form for collecting biometric data into Korean.

The Worldcoin Foundation was fined 725 million won ($545,000) for violations in handling confidential information and transferring data overseas. Tools For Humanity (TFH) was also fined 379 million won ($285,133) for violating its obligations in transferring data overseas.

The regulator said the Worldcoin Foundation and TFH failed to inform South Korean users where their personal information was being transferred, or provide the name and contact information of the person receiving the data, which violated local laws.

In addition, TFH did not check the age of subscribers under 14 until April 2024. PIPC added that collecting sensitive data is not prohibited in South Korea, but it must be done in accordance with established rules. The regulator called on Worldcoin to correct the shortcomings. TFH management said that it has nothing against the fine imposed by the South Korean regulator.

“The PIPC investigation found weaknesses in disclosure when our crypto project was initially launched in South Korea. The identified flaws have now been addressed and TFH’s operations, including the use of Orb verification for human verification, are in compliance with the Personal Information Protection Act of South Korea,” TFH said.

In June, Worldcoin resumed operations in Kenya after local authorities found no violations of regulations in scanning users’ faces. However, Kenyan authorities have called on Worldcoin to obtain a license to operate in the country.