On August 6, 2025, a stern warning from China's highest security agency dropped a bombshell in the global cryptocurrency and technology field. The Ministry of State Security (MSS) issued a stern announcement through its official social media account, stating that certain behaviors that lure people with 'free cryptocurrency' while scanning and collecting users' iris and other biometric data pose a serious threat to China's personal information security and even national security.
Although the full announcement does not directly mention any company names, the described operating model—scanning irises in exchange for digital tokens—aligns closely with the cryptocurrency project 'Worldcoin,' co-founded by OpenAI CEO Sam Altman. This unnamed 'named' warning is widely interpreted as the clearest and harshest signal from the Chinese government to biometric data encryption projects represented by Worldcoin.
Unnamed Warning
In its announcement, the Chinese Ministry of State Security detailed this potential threat. The announcement pointed out that a 'certain overseas company' is using the issuance of cryptocurrency as a pretext to scan and collect users' iris information globally, subsequently transferring these extremely sensitive biometric data sources to unknown locations.
The Ministry of State Security emphasizes that biometric characteristics such as facial recognition, fingerprints, and iris patterns are unique, immutable, and non-reproducible, making them extremely important personal identifiers in the digital age. Once this data is leaked or misused, the consequences could be dire. Criminals may use this information for identity theft, financial fraud, or even illegal surveillance.
By elevating this issue to the level of national security, the Ministry of State Security has expressed deeper concerns. The announcement mentioned that there is evidence indicating that foreign intelligence agencies have been attempting to illegally collect biometric data from other countries and use this data to forge identities to enter sensitive areas or conduct espionage activities. Therefore, such large-scale, indiscriminate transfers of citizens' biometric data overseas undoubtedly pose a significant risk to national security.
To this end, the Ministry of State Security urges Chinese citizens to remain highly vigilant and not to sell their precious biometric information for small gains, encouraging the public to report any suspicious data collection activities to national security agencies immediately.
The Global Controversy of Worldcoin
Although Chinese officials have maintained diplomatic restraint, global media and analysts have no doubt that the warning is directly aimed at Worldcoin.
Since its inception, the Worldcoin project has been accompanied by significant controversy. Its core idea is to establish a reliable 'Proof of Humanity' system in a future overwhelmed by artificial general intelligence (AGI) to effectively distinguish real humans from AI robots. To achieve this goal, the project designed a spherical device called 'Orb' that sets up scanning points around the world. Users who are willing to let the Orb scan their irises can receive a Worldcoin (WLD) token as a reward.
$WLD
This radical model, while attracting a large number of users from over 160 countries in a short period, has also triggered a global regulatory storm and privacy concerns. China is not the first country to raise a red flag. South Korea: In 2024, the Personal Information Protection Commission (PIPC) imposed a fine of approximately $830,000 on Worldcoin and its parent company Tools For Humanity (TFH) for violating data protection laws. Multiple countries have banned: Several countries and regions, including Kenya, Brazil, Spain, Portugal, and Hong Kong, have successively banned or halted Worldcoin's iris scanning activities. Widespread scrutiny: Regulatory bodies in countries like Germany, Colombia, and Indonesia have also launched in-depth investigations into Worldcoin's data protection compliance and the transparency of its privacy policies.
The warning from China's Ministry of State Security is undoubtedly the harshest to date in this global regulatory storm. It no longer merely addresses personal privacy protection but directly questions the fundamental model of such projects from the vantage point of 'national security.'
It is worth noting that the warning from the Ministry of State Security is not unfounded, as it is supported by the increasingly完善 data security legal system that China has gradually established in recent years.
China has successively introduced and implemented a series of significant laws such as the Data Security Law, Cybersecurity Law, and Personal Information Protection Law. These regulations delineate clear and strict legal boundaries for the collection, storage, use, and cross-border transmission of sensitive information, especially biometric data like facial and iris recognition. Any individual or organization, regardless of their registration location, must strictly comply with these provisions when processing the personal information of Chinese citizens within China.
This means that the warning from the Ministry of State Security is not just a verbal reminder, but a serious declaration against potential illegal activities. Any attempts to carry out projects similar to the Worldcoin model within China will face severe sanctions from Chinese law.
Web3 Idealism and National Data Sovereignty
China's national security alert regarding Worldcoin-style projects marks a fierce collision between an emerging and controversial business model in the Web3 field and the strong will of national sovereignty.
On one hand, there are Web3 idealists represented by Worldcoin. They attempt to solve grand problems that the future world may face (such as distinguishing humans from machines) using decentralized technological solutions and believe in a borderless global governance model driven by code and consensus.
On the other hand, there are countries represented by China that increasingly value data sovereignty. They view citizens' biometric data as one of the core strategic resources of the nation, and its security and control must not be handed over to any overseas entities not bound by the laws of their country.
This incident has sounded the loudest alarm for all projects attempting to bundle sensitive personal data with cryptocurrency assets. It clearly indicates that any technological innovation, regardless of how grand its vision, will face strong backlash from state machinery once it touches the red line of 'data sovereignty.' In the digital age, the struggle for control over data has become a new battlefield for great power competition.