China's 'Named' Warning to Worldcoin? Ministry of National Security: 'Iris in Exchange for Cryptocurrency' Threatens National Security!
What’s Happened: China’s Biometric Data Warning
China’s Ministry of State Security (MSS) issued a public warning—via its official WeChat account—about the national security risks posed by foreign cryptocurrency projects that incentivize iris scans with token giveaways. The MSS cautioned that such practices can endanger both personal privacy and national sovereignty .
Although no project was explicitly named, the description aligns closely with Worldcoin (now known as World), which collects iris biometrics using its “Orb” device in return for its $WLD token .
Key Security Risks Highlighted by MSS
Irreversible biometric data: Unlike passwords, iris or facial patterns are immutable. If compromised, they can’t be changed, raising concerns over long-term misuse .
Potential espionage tools: MSS warned that stolen biometric data or deepfaked identities may be used by foreign intelligence agencies to infiltrate sensitive facilities and carry out surveillance .
Cross-border data transfer concerns: Data collected from citizens and funneled abroad was flagged as a threat to national security, prompting calls for tighter oversight .
Broader Regulatory Context for Worldcoin/World
This isn’t the first regulatory blow for Worldcoin:
Hong Kong ordered an immediate cessation of its facial and iris data collection operations, labeling them “unnecessary and excessive” under local privacy laws .
Several jurisdictions—including Kenya, Brazil, Spain, and Germany—have also imposed suspensions, bans, or launched investigations, citing issues like consent, data security, and transparency .
What This Means
Global biometric-based crypto identity systems are encountering growing regulatory resistance, especially in countries sensitive to data sovereignty and privacy threats.
China’s warning may serve as a deterrent against similar schemes operating within or targeting Chinese residents—and potentially influence other nations to strengthen regulations.
For companies like World, this poses substantial operational and reputational challenges, especially in markets where data governance is tightly enforced.
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