China’s iris data warning raises red flags for Worldcoin operations

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China’s Ministry of State Security (MSS) has warned that a foreign crypto company is collecting iris scan data under the guise of token distribution, raising serious concerns about personal and national security.

In an Aug. 5 statement, the ministry revealed that the firm is gathering iris data from users worldwide and transmitting it to an overseas database. Authorities did not name the company, but they cautioned that the biometric information could be exploited if it fell into the wrong hands.

The MSS stressed that iris data, like other forms of biometric information, could be used for identity theft, fraud, and illegal surveillance once leaked.

Officials cited recent examples, including a foreign firm whose fingerprint payment system was compromised due to weak security controls. Hackers reportedly accessed sensitive user data by breaching the company’s internal systems.

According to the ministry, there is mounting evidence that foreign intelligence agencies have engaged in unauthorized collection of facial and biometric data. These actors allegedly falsify such data to access secure environments and conduct surveillance operations.

The MSS noted this represents a growing risk to China’s national security.

Considering this, the authorities stressed that Chinese law provides strict safeguards around biometric data, including facial and iris recognition technologies.

The MSS urged both citizens and organizations to comply with existing legal frameworks. It also encouraged the public to remain alert and report suspicious data collection activities.

Worldcoin suspected

While the Chinese ministry avoided directly naming the company, the description closely aligns with Worldcoin, which has now been rebranded as World.

The project scans users’ irises in return for WLD tokens, a practice already under investigation in multiple jurisdictions.

Over the past year, the Sam Altman-backed company has recorded significant growth by scanning the irises of more than 10 million people worldwide. At the same time, the firm has also expanded into countries like the United States and Malaysia.

However, its operations have triggered regulatory scrutiny in Colombia, Germany, Hong Kong, South Korea, and Indonesia.

Authorities in those regions have raised red flags over data protection violations, non-compliance with privacy laws, and a lack of transparency.

Meanwhile, Worldcoin has continued to stress its commitment to legal compliance, hashed data, and the high standards of its users’ privacy protection.