Beijing Cracks Down on Crypto Iris-Scanning as Sam Altman’s Worldcoin Faces Scrutiny

China’s Ministry of Security has cautioned against the growing trend of crypto projects collecting sensitive biometric data, including iris scans. Targeting projects like Worldcoin, founded by Sam Altman, China raises concerns over privacy and national security.

China Flags Iris Scanning Crypto Projects Like Worldcoin

According to recent reports, China has warned against Iris Scanning Crypto Projects like Worldcoin. The Ministry of Security highlighted the national security risks of biometric data misuse, specifically targeting companies that offer crypto in exchange for iris scans.

On Wednesday, the country released a security bulletin, identifying the growing risks tied to biometric data collection. They cited an unnamed foreign company that gathered iris data under the guise of cryptocurrency rewards and transferred it, raising concerns about privacy and national security. The authority noted,

Improper storage of relevant data can lead to leaks, which not only endanger personal privacy and property security but also pose a threat to national security…While biometric identification brings convenience, we should attach great importance to its security and be cautious when providing personal biometric information.

Interestingly, this development follows Worldcoin’s launch of World ID, a digital proof of humanness. To obtain a World ID, users undergo a unique verification process involving an iris scan using NVIDIA-powered Orbs. This biometric verification method reportedly aims to confirm an individual’s humanity and provide a secure digital identity.

Worldcoin Faces Scrutiny in Multiple Countries

Even though the Security Ministry hasn’t specified the foreign company, the reference seems to be pointing to Worldcoin, a project co-founded by Sam Altman, which offers its WLD token as rewards for iris data.

Significantly, this project has already faced regulatory issues in Germany, France, and Kenya due to similar concerns. These governments have warned the company of issues like data storage and surveillance risks.

As CoinGape reported, last year, Hong Kong alleged that Worldcoin violated the privacy ordinance. The government’s investigation into the project identified that it breached several data protection principles outlined in the Privacy Ordinance. This includes inadequacies in the collection, retention, transparency, access, and correction of personal data.

Despite these allegations, advisor Liam Horne addressed critics at Consensus 2024, stating that they misunderstand how Worldcoin’s Orb functions internally. He asserted, “The data literally never leaves the orb.”

Echoing these countries’ restrictive approach, Beijing emphasized potential national security threats, including cases where stolen facial data was used to create deepfake identities, enabling spies to infiltrate secure facilities. The ministry emphasizes the risks of biometric data falling into the wrong hands, potentially becoming a weapon for malicious activities.