China warns against submitting biometric data in return for crypto, hinting at World

Chinese authorities are warning about the dangers of sharing biometric information, such as iris data, with foreign companies in exchange for cryptocurrency, seemingly referring to the digital ID project World. The Sam Altman-founded company allows users to claim some of its WLD digital coins after scanning their irises.

Iris data are often targeted by criminals and may be collected and stolen under various pretexts, according to a social media post by the Chinese Ministry of State Security on Wednesday. Biometric data leaks not only affect personal privacy and security but also allow foreign intelligence agencies to obtain information on targets and infiltrate their workplaces, it adds.

“Public cases are showing that a certain overseas company uses the issuance of cryptocurrency tokens as a gimmick to scan and collect user iris information worldwide, and transfer the data source, posing a threat to personal information security and even national security,” the Ministry says on its official WeChat channel.

World, including its crypto wallet World App, does not have an official presence in China. The country is well-known for its negative stance towards cryptocurrency: In 2017, its government banned domestic cryptocurrency exchanges and Initial Coin Offerings (ICOs), citing financial risks and fraud prevention.

China has also been cracking down on biometric data collection in recent years, driven by public pressure and frequent news of data leaks. This includes issuing new regulations for commercial uses of facial recognition.

Last year, China’s Special Administrative Region of Hong Kong, which is governed by separate laws, ordered World to cease operations after its privacy office concluded that the company runs afoul of local data privacy regulations. The Hong Kong Office of the Privacy Commissioner for Personal Data also staged multiple raids on World offices across the city.

World, which recently reached 14 million verified users, has been facing regulatory scrutiny in other markets across the world, including Germany, Indonesia and Kenya.

Article Topics

biometric data  |  biometric identifiers  |  biometrics  |  China  |  cryptocurrency  |  data sharing  |  iris biometrics  |  World  |  World ID Orb