China has strongly warned about the risks to national security from cryptocurrency projects collecting biometric data, while also recommending that citizens proactively report any suspicious activities.
The collection of biometric data such as iris scanning, facial recognition, or fingerprints is raising concerns for many countries about the risk of personal information leakage and its impact on national security.
MAIN CONTENT
China warns of national security risks from cryptocurrency projects collecting biometric data.
Many countries have banned or restricted iris scanning activities like Worldcoin to protect user information.
The prices of many cryptocurrencies fluctuated after rumors and new regulatory actions from governments appeared.
What has China warned about cryptocurrency projects that collect biometric data?
The Ministry of National Security of China emphasizes that cryptocurrency projects using biometric scanning technology such as iris, face, and fingerprints pose potential risks to national security.
In an official announcement on WeChat, the Ministry emphasized that biometric authentication technologies such as iris scanning, facial recognition, fingerprint recognition, and gait recognition are crucial in the digital age but pose risks of personal information leakage, invasion of privacy, and threats to national security.
They also recommend that citizens proactively report any suspicious biometric data collection activities to national security agencies to protect personal and social interests.
A foreign company has used the excuse of issuing cryptocurrency Tokens to scan and collect users' iris information globally, then transferred this data source...
Ministry of National Security of China, WeChat, 08/2025
It can be seen that this is a direct warning aimed at projects like Worldcoin – the iris scanning project to verify identity, trading off for rewards in Tokens.
Why is biometric technology a sensitive issue for national security?
Biometric data such as iris, face, and fingerprints, when exposed, not only harm personal privacy rights but also pose risks of being exploited for surveillance, fraud, or national cybersecurity attacks.
According to a study by Privacy International in 2024, the strong digitization process in the field of biometric identification is creating new risks of leakage and abuse of personal data on a global scale. Especially if these systems fall into the hands of criminal organizations or are manipulated by foreign governments or corporations, the impact could be very serious.
McKinsey security experts warn: the risk of biometric data leaking is irreversible, as iris or fingerprint information is unique to each person and cannot be changed if it gets out of control.
Biometric data, once stolen or leaked, will have severe consequences as it cannot be changed like traditional numeric passwords.
Dr. Harry Shum, AI expert, member of the AI Council of China, Security Technology Forum, 2023
What is Worldcoin?
Worldcoin is a project that uses iris scanning technology to verify people, aiming to differentiate between real humans and AI in the booming AGI era.
Worldcoin provides a scanner (Orb) to capture iris images to create a unique identification for each person. In return, users receive WLD Tokens as a reward. The goal is to establish a 'humanity layer' identification that distinguishes between AI-bots and real individuals in today's extremely complex digital environment.
Since its launch, Worldcoin has faced many controversies related to privacy, data governance, and ethics in developing a global network based on sensitive biometric information.
In the AI era, we need a global identity verification infrastructure that is transparent and independent of any nation or centralized organization to ensure human rights.
Sam Altman, CEO of Worldcoin, Future of Identity Conference 2023 (according to TechCrunch)
What is Worldcoin's mission, and what issues does the project aim to address?
Worldcoin aims to address the increasingly complex issue of distinguishing between humans and machines (AI) due to the strong development of AI platforms that can create deepfakes, automating everything from communication to shopping and virtual travel assistance.
By building a unique identification database, Worldcoin aims to affirm 'humanity' in the post-AI omnipotent era through biometric authentication. In other words, this is an effort to create a standard of identity that excludes AI bots affecting social networks, finance, and digital services.
However, this model also poses significant challenges regarding personal data management on a global scale, pushing the issue beyond the scope of an individual or a single nation.
What are the major risks of using biometric data scanning technology on a global scale?
The collection and storage of extensive biometric data face many risks: personal data leaks, theft, or misuse for malicious purposes that individuals cannot control.
The development of Deepfake AI mechanisms like Omnihuman makes it increasingly difficult to distinguish between fake and real faces and voices, increasing the risk of fraud, deception, and widespread invasion of privacy. As a result, end users have less control over the sensitive information of each individual.
According to Wired magazine (2024), more than 60% of surveyed security experts believe that biometric data offers many benefits but is also the top priority target for hackers due to its 'uniqueness' and high value on the black market.
How is China's move to manage biometric scanning projects?
China has emphasized the risks to national security from biometric data being collected, extracted, and transmitted abroad from cryptocurrency projects. Authorities are calling on citizens to detect and report any suspicious activities related to biometric scanning.
This action received consensus from the security expert community, as many studies indicate that China is the most widespread user of facial recognition technology in the world but also continuously updates regulations to protect citizens' privacy (Source: SCMP, 2024).
These new policies are a testament to a proactive strategy to control the flow of cross-border digital data, aiming to build a transparent digital environment without compromising privacy.
Proactively controlling biometric scanning platforms is a vital measure for China to defend against global data security threats.
Li Wei, cybersecurity expert, China Policy Research Institute, speaking to Global Times, 2025
What are the actual consequences of Worldcoin in other countries?
Many countries have banned or restricted projects similar to Worldcoin. Specifically, Worldcoin's biometric scanning activities have been suspended in Kenya, Brazil, Spain, Portugal, and Hong Kong due to privacy concerns.
In addition, countries with strict data legal frameworks have also voiced concerns about the risk of manipulation and leakage, as well as advising investors and citizens not to provide important data to projects with unclear origins, technology, or data governance.
This is also a general trend as personal data protection standards (such as Europe’s GDPR) are increasingly being applied rigorously on an international scale, shifting the responsibility for transparency to technology companies.
In the globalized data environment, every technology product touching biometric information must strictly adhere to security and ethical standards, even with the newly developing cryptocurrency sector.
Mary Simpson, European Security Expert, Data Privacy Seminar 2025, according to Financial Times
What is the reaction of the cryptocurrency market after actions from China and other countries?
Immediately after China issued a strong message, the market quickly recorded fluctuations. Specifically, the price of WLD Token (Worldcoin) dropped 5% on August 5, 2025. Although it is unclear whether this drop was directly due to information from China or just part of a wider sell-off in the global stock and cryptocurrency markets, it is clear that investor sentiment was significantly affected.
In this context, Bitcoin's price also plummeted sharply, trading around $114,000, down 7% from the recent peak of over $120,000 (according to updated trading data from TradingView, August 2025, adjusted to Vietnam time).
Many experts believe that although it is a temporary impact, this event could prolong the risks of price volatility for cryptocurrencies related to biometric identification technology or under pressure from new international regulatory frameworks.
Will there be a ban on personal ownership of Bitcoin in China after recent rumors?
Many rumors have emerged about China potentially issuing a complete ban on personal ownership of cryptocurrencies, including Bitcoin.
However, reputable verification sources like AMBCrypto have found no concrete evidence for this rumor. Thus, it is likely that this is fake news, intended to manipulate the market and create panic to profit by buying cryptocurrencies at lower prices.
An independent investigation by Cointelegraph and Bloomberg has also never recorded any central or local legal documents confirming a comprehensive ban on personal ownership of cryptocurrencies in China as of August 2025.
A comparison table of national moves regarding the management of biometrics in the cryptocurrency sector.
The following table summarizes detailed information about some typical countries:
Country Policy Moves Affected Projects Standards or Reasons China Strongly warns, tightens control Projects like Worldcoin National security protection, citizen rights European Union Ends/Suspends, legal review Worldcoin (in Spain, Portugal) GDPR compliance Kenya, Brazil Bans/suspends Worldcoin Data security, privacy Hong Kong Warns and increases control Worldcoin Enhances personal data protection
How does the cryptocurrency market get affected by biometric data policies?
The global biometric data control policy forces cryptocurrency projects to build more transparent and secure data management mechanisms, significantly reducing the ability to scale quickly.
This not only creates legal barriers but also impacts the value of the Token and user trust. Particularly, projects like Worldcoin that pioneer identification technology but have not proven data safety will face challenges when implementing in major markets with strict data regulations.
Large investment organizations are also tending to be more cautious when considering investments in cryptocurrency solutions related to biometrics due to regulatory risks and the increasing threat of cyberattacks.
What are some forecasts about the management trends and development of cryptocurrency projects applying biometrics?
Experts believe that in the next three years from 2025, cryptocurrency projects applying biometrics will need to shift their focus towards security, transparency, and compliance with newly developed international data regulations for sustainable growth.
Additionally, personal data encryption technology (zero-knowledge proof) will play a key role in the future of this field. Businesses will need to collaborate with government authorities in each country if they want to operate sustainably.
Projects that continue the large-scale biometric data collection model without being able to demonstrate transparency and security will risk being banned or restricted in many key markets.
Frequently Asked Questions
What is biometric data and why is it of interest to cryptocurrency projects?
Biometric data, which includes iris, face, and fingerprints, is a unique identifier for each individual, helping cryptocurrency projects authenticate 'real people' and eliminate bots or fake AI.
Is Worldcoin operating in Vietnam?
As of August 2025, Worldcoin has not officially deployed iris scanning devices in Vietnam due to the lack of a legal framework for biometric data protection.
Why has China reacted strongly to the iris scanning project?
China sees this as a national security issue because biometric data leaking out can be exploited for technology espionage or infringe digital sovereignty.
Is there a risk of a complete ban on personal ownership of Bitcoin in China?
There is no verified evidence that China has or will completely ban personal ownership of Bitcoin by August 2025.
How to protect biometric data when participating in cryptocurrency projects?
Choose projects that are transparent, comply with international security standards, and absolutely do not share biometric data with unidentified sources.
Is the collection of biometric data prohibited in Europe?
Most biometric data collection activities must strictly comply with EU GDPR, and many projects have been suspended or reviewed to meet this standard.
How has the price of Worldcoin Tokens fluctuated after the warning from China?
After China’s warning, the price of Worldcoin's WLD Token dropped about 5% amid a widespread sell-off in the cryptocurrency market on August 5, 2025.
Source: https://tintucbitcoin.com/worldcoin-bi-trung-quoc-canh-bao-rui-ro/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
