Worldcoin is once again in the spotlight—this time due to a warning issued by China’s Ministry of State Security (MSS). In an official announcement published on WeChat on August 6, authorities warned about the growing trend of cryptocurrency projects collecting extremely sensitive biometric data, such as iris scans, in exchange for digital rewards. According to MSS, such practices pose serious risks to individual privacy and national security.

Fake Promises, Real Risks

China’s security agency warns that facial scans, fingerprints, and iris data are increasingly being misused under the pretense of identity verification or token distribution. In some cases, this data is collected without a clear purpose—or worse, transferred to unknown third parties for surveillance or fraud.

While the agency didn’t name a specific project, the description perfectly matches Worldcoin—the controversial crypto platform that relies on biometric verification through a device known as the “Orb.”

What Is Worldcoin – And Why Is It a Problem?

Worldcoin, recently rebranded as World, was launched in July 2023 by Tools for Humanity, co-founded by OpenAI CEO Sam Altman. Its main idea is to create a universal digital identity system called World ID, which users obtain by scanning their iris.

In exchange, users receive the project’s native token, WLD. World claims its system helps distinguish humans from AI online while offering a secure and anonymous digital identity layer.

But that promise has been met with serious concerns.

Global Backlash and Bans

Soon after launch, the project faced strong resistance from governments and regulators. Kenya was the first to ban Worldcoin in September 2023, just months after launch, citing concerns about how citizen data was collected and used.

In Hong Kong, the privacy commissioner ruled that Worldcoin violated personal data regulations, and similar concerns were echoed in France, Spain, Portugal, Brazil, and South Korea. In some countries, Worldcoin has been forced to shut down operations.

While the project claims to use advanced privacy-protection tools like zero-knowledge proofs and insists it complies with local laws, skepticism remains.

Token Falls, Trust Erodes

Meanwhile, the WLD token continues to lose value. It’s currently trading at $0.94, down 45% over the past year and 90% from its all-time high.

The sharp decline is largely attributed to regulatory pressure and fears over potential data misuse. If criticism from China gains traction, the token could face further losses.

One-Minute Recap:

🔹 China warns about crypto projects collecting biometric data for tokens

🔹 Worldcoin (now World) faces criticism for using iris scans

🔹 Banned or restricted in multiple countries

🔹 WLD token is down 90% from its peak

🔹 More downside risk if China introduces regulations


#Worldcoin , #WLD , #CryptoCommunity , #DataSecurity , #DigitalIdentity

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