France questions legality of Worldcoin biometric data, as SEC adviser on audits warns against misusing term

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The Worldcoin project’s collection and retention of biometric data through eye scans, which went live this week, is being closely examined by France and Germany. The US Securities and Exchange Commission’s adviser on auditing warns that the term may be misused in some crypto marketing, and feuding bankruptcies FTX and Genesis seem to have reached an agreement in principle. Read on!

Here are some stories we’re looking at right now.

Worldcoin biometric data legality questioned

France’s privacy watchdog CNIL told Reuters the legality of the Worldcoin project’s biometric data collection “seems questionable.” It is coordinating an investigation with the Bavarian state authority in Germany.

ChatGPT founder Sam Altman’s project scans peoples’ eyes to enable them to prove they are real persons without revealing their identities, DL News reported. It has signed up more than two million people so far, mostly in trials, as the project just went live this week. The Worldcoin Foundation told Reuters that it is committed to meeting all regulatory requirements.

SEC warns on misleading ‘audits’

The US Securities and Exchange Commission’s principal adviser on accounting and auditing wrote that some crypto asset trading platforms have marketed their retention of accounting firms that review certain parts of their businesses as “audits,” which may not be correct.

The SEC’s Paul Munter wrote that “non-audit arrangements are neither as rigorous nor as comprehensive as a financial statement audit, and may not provide any reasonable assurance to investors.” He warned that accounting firms may find they incur legal liability if their work is misrepresented.

FTX, Genesis reach in-principle agreement

Crypto exchange FTX and lender Genesis — both of which have filed for Chapter 11 bankruptcy — may have reached an agreement to settle a $2 billion dispute, according to a letter filed with the US Bankruptcy Court for the Southern District of New York.

The managers at FTX are attempting to claw back funds they say were received by Genesis, in order to repay creditors. Genesis has denied owing anything to FTX. The letter contained few specifics other than that the parties have reached an “agreement in principle, subject to documentation, regarding a settlement” that would resolve various claims.

Crypto.com registered in Netherlands

Crypto.com was registered as a crypto service provider by the Dutch central bank, which has previously taken a hard line towards other companies, including Binance and Coinbase, CoinDesk reported.

Under laws taking effect next year, exchanges and wallet providers licenced in one EU country such as the Netherlands will be permitted to work in all 27 nations, the report said.

Peru tightens crypto exchange laws

Peru’s presidency decreed that cryptocurrency exchanges must comply with anti-money laundering regulations and report appropriate information to the Financial Intelligence Unit, Bitcoinist reported.

The Financial Intelligence Unit will release specific guidelines for the prevention of money laundering and terrorism financing soon, the report added.

What we’re reading around the web

I had my irises scanned by Sam Altman’s Worldcoin Orbs so you don’t have to — here’s what happened — DL News

Crypto sector is rife with ‘fraud’ and ‘hucksters,’ warns SEC chair Gary Gensler — Business Insider

A BlackRock BTC ETF Wouldn’t Be Possible Without Bitcoin Miners — CoinDesk