According to recent reports, China has warned against cryptocurrency projects that use iris scans, such as Worldcoin. The Ministry of Security highlighted the risks to national security posed by the misuse of biometric data, especially to companies that offer cryptocurrency in exchange for iris scans.
On Wednesday, the country released a security bulletin identifying the growing risks associated with the collection of biometric data. They cited an anonymous foreign company that collected iris data under the guise of cryptocurrency rewards and transferred it, raising concerns about privacy and national security. The authority noted:
"Inadequate storage of relevant data can lead to leaks that not only jeopardize personal privacy and property security but also pose a threat to national security... While biometric identification provides convenience, we must place great importance on its security and be cautious when providing personal biometric information."
Interestingly, this development comes after the launch of World ID by Worldcoin, a digital proof of humanity. To obtain a World ID, users undergo a unique verification process that involves an iris scan using Orbs with NVIDIA technology. This biometric verification method reportedly seeks to confirm a person's humanity and provide a secure digital identity.
Although the Ministry of Security has not specified the foreign company, the reference seems to point to Worldcoin, a project co-founded by Sam Altman, which offers its WLD token as a reward for iris data.
It is noteworthy that this project has already faced regulatory issues in Germany, France, and Kenya due to similar concerns. These governments have warned the company about risks such as data storage and surveillance.
Last year, Hong Kong alleged that Worldcoin violated the privacy ordinance. The government investigation into the project identified that it breached various data protection principles established in the Privacy Ordinance. This includes deficiencies in the collection, retention, transparency, access, and correction of personal data.
Despite these accusations, adviser Liam Horne addressed critics at Consensus 2024, asserting that they do not understand the inner workings of the Worldcoin Orb. He assured: "The data literally never leaves the orb."
Echoing the restrictive approach of these countries, Beijing emphasized the potential threats to national security, including cases where stolen facial data was used to create ultra-fake identities, allowing spies to infiltrate secure facilities. The ministry emphasized the risks of biometric data falling into the wrong hands, becoming a weapon for malicious activities.
