China Issues Warning Over Iris-Scanning Crypto Projects
Key Takeaways
Chinese authorities warn against crypto projects collecting iris-scan data
Ministry of State Security flags national security risks from biometric data leaks
Warning appears to target Worldcoin (Sam Altman’s project) without naming it
China maintains crypto ban, now adds biometric data protection concerns
The Privacy Crackdown
🔒 Government Warning:
Labels iris-scan token rewards a "national security threat"
Claims foreign firms could export sensitive Chinese biometric data
Follows China’s ongoing crypto prohibition
👁️ Worldcoin Connection:
Project uses "Orb" devices to scan irises for crypto rewards
Has faced global scrutiny over privacy concerns (Germany, France, Kenya)
Why This Matters
🇨🇳 China’s Stance:
Already bans crypto trading/mining
Now targeting data collection tied to blockchain projects
Aligns with broader data sovereignty laws
🌐 Global Context:
Worldcoin paused operations in multiple countries over regulatory pushback
Highlights tension between Web3 identity solutions and privacy laws
What’s Next?
⚠ Enforcement: China may block related apps/websites
🔍 Investor Caution: Projects mixing crypto + biometrics face rising scrutiny
📉 Market Impact: Privacy-focused tokens could see volatility
Posted: August 6, 2025 | Source: Weixin
Final Thought: China’s warning signals a new front in crypto regulation—biometric data protection. Similar moves by other governments may follow.