China’s Ministry of State Security has issued a stark warning regarding cryptocurrency projects that collect users’ biometric data, identifying such practices as a potential threat to national security.
The Ministry explicitly highlighted the security risks associated with the collection of sensitive personal information like iris scans or facial recognition data by these ventures. It urged the Chinese public to maintain heightened vigilance against suspicious crypto-related operations seeking biometric information.
Leading crypto identity verification project Worldcoin, which utilizes iris-scanning technology to distinguish humans from AI entities and reward users, was named in the context of this warning. Similar concerns over data privacy and security have prompted other jurisdictions to act.
Worldcoin has faced regulatory pushback globally, resulting in operational suspensions or investigations in countries including Kenya, Brazil, Spain, Portugal, and Hong Kong. The core contention revolves around the large-scale collection and handling of highly sensitive biometric identifiers.