Colombia's Superintendency of Industry and Commerce (SIC) has ordered the immediate closure of several companies collecting biometric data, such as iris scans, in exchange for cryptocurrency payments. The action follows an investigation uncovering serious flaws in user data protection protocols. Officials warn of the dangers in sharing biometric information without proper safeguards.
Colombia's Superintendency of Industry and Commerce (SIC) acted after an investigation that exposed gaps in data protection protocols. Several companies were gathering highly sensitive biometric information, such as iris scans, in return for cryptocurrencies. This affected thousands of citizens who provided their data without understanding the risks or its ultimate use.
In cities like Pereira and Dosquebradas in Risaralda department, one of these firms' locations drew daily long lines of people seeking the digital payments. Cielo Rusinque, the SIC superintendent, pointed out how the practice exploited users' lack of awareness. “Many people were handing over their iris in exchange for some cryptocurrencies without grasping the sensitivity of that information. From the SIC, we issued preventive alerts to stop this practice from spreading further,” Rusinque stated.
She also noted that the involved company had faced scrutiny and penalties in other countries, prompting a stronger response in Colombia. The closures aim to protect citizens from a model failing to meet basic security standards for data handling under current regulations.
The SIC stressed that biometric data collection is only allowed under rigorous technical and legal standards with state oversight. It urged the public to refrain from sharing such information with unauthorized entities, as misuse could lead to identity theft, financial harm, and personal security threats.