China’s Ministry of State Security (MSS) has issued a warning about a foreign crypto company that is allegedly collecting iris scan data in the name of token distribution, raising concerns about personal and national security.
In a statement released on August 5, the ministry disclosed that the company is gathering iris data from users globally and transferring it to an overseas database. While the firm was not named, authorities cautioned that the biometric information could be misused if it falls into the wrong hands.
The MSS emphasized that iris data, like other forms of biometric information, could be utilized for identity theft, fraud, and illegal surveillance if it is compromised.
Recent incidents, such as a foreign company’s fingerprint payment system being breached due to inadequate security measures, were cited as examples. Hackers reportedly gained access to sensitive user data by exploiting vulnerabilities in the company’s internal systems.
The ministry also highlighted a growing concern about foreign intelligence agencies engaging in unauthorized collection of facial and biometric data. This data could potentially be falsified to gain access to secure environments and conduct surveillance activities, posing a significant risk to China’s national security.
Given these risks, Chinese law imposes strict regulations on the handling of biometric data, including facial and iris recognition technologies. The MSS urged citizens and organizations to adhere to existing legal frameworks and encouraged the public to report any suspicious data collection activities.
One company that closely fits the description provided by the ministry is Worldcoin, now known as World. The project offers WLD tokens in exchange for scanning users’ irises, a practice that has come under scrutiny in various jurisdictions.
Worldcoin, backed by Sam Altman, has experienced substantial growth over the past year by scanning the irises of over 10 million individuals worldwide. However, its operations have faced regulatory challenges in countries like Colombia, Germany, Hong Kong, South Korea, and Indonesia.
Authorities in these regions have expressed concerns about potential data protection violations, lack of compliance with privacy laws, and a lack of transparency in Worldcoin’s practices.
Despite these challenges, Worldcoin maintains its commitment to legal compliance, secure data storage, and safeguarding user privacy.
As the issue of biometric data collection continues to raise alarms, it is essential for both individuals and organizations to prioritize data protection and adhere to regulatory requirements to mitigate potential risks to personal and national security.