Hong Kong’s privacy regulator has determined that Worldcoin violated local privacy laws and has ordered the Worldcoin Foundation to halt all operations in the region.
Worldcoin, an iris biometric crypto startup co-founded by OpenAI CEO Sam Altman, is facing controversy over its data collection practices in Hong Kong.
A report released on May 22 by the Office of the Privacy Commissioner for Personal Data (PCPD) found that the project breached Hong Kong’s Personal Data (Privacy) Ordinance. The report highlighted privacy risks related to how the San Francisco-based startup manages biometric data.
Privacy Commissioner Ada Chung Lai-ling stated that the face and iris images collected by the Worldcoin project were “unnecessary and excessive,” thus violating local privacy regulations.
The findings revealed that Worldcoin’s data collection practices were unfair and lacked transparency. According to the PCPD, the relevant privacy notice and biometric data consent form were not provided in Chinese, and operators failed to sufficiently explain these documents to participants. Moreover, the extended retention of personal data by Worldcoin for a duration of up to 10 years was deemed as disproportionate.
“The retention period was too long and amounted to prolonged retention of personal data.”
Ada Chung
Furthermore, Worldcoin neglected to inform participants about their rights to access and rectify their data, thus violating privacy regulations. As a result, the Privacy Commissioner issued an enforcement notice instructing Worldcoin to stop all activities related to the Worldcoin project in Hong Kong, which includes the scanning and collection of iris and facial images of the public using iris scanning devices.
The PCPD’s investigation revealed that over 8,300 individuals in Hong Kong had their biometric data scanned to receive WLD tokens, which are intended to facilitate global transactions within the Worldcoin ecosystem. Currently, Worldcoin has not released any public statements concerning this matter.
Established in 2019 by Sam Altman, Max Novendstern, and Alex Blania, Worldcoin is a cryptocurrency project focused on developing a worldwide digital identity platform utilizing iris-scanning technology. In May 2023, the project successfully raised $115 million in a Series C funding round, led by Blockchain Capital and joined by Andreessen Horowitz (a16z), Bain Capital Crypto, and Distributed Global.
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