China’s Ministry of State Security (MSS) has issued a public warning about cryptocurrency ventures that collect sensitive biometric data, identifying such projects as potential threats to national security. The bulletin, released today, specifically flagged the collection of iris, facial, and fingerprint data in exchange for digital assets.
Although the MSS did not mention any company by name, the warning appears to target initiatives like World (formerly Worldcoin), which uses iris-scanning “Orb” devices to verify user identity in exchange for cryptocurrency tokens.
The MSS bulletin, as summarized by Crypto.news, warned that “facial, fingerprint and iris data are increasingly being harvested under false pretenses,” with crypto incentives often used as bait. It added that such activity “poses serious risks and threats to both personal privacy and national security,” according to English-language reports.
The agency further emphasized the permanent risk of biometric data breaches, stating that iris recognition is a high-precision method commonly used in sensitive contexts and that once compromised, such biometric “keys” are nearly impossible to replace. The MSS noted that foreign actors have collected iris and facial data under the guise of identity verification or token distribution, and in some cases, the data was transferred for unknown purposes. These practices could enable identity theft, unauthorized access to secure facilities, or even espionage operations, the bulletin warned.
China’s warning follows a growing international backlash against large-scale biometric data collection tied to cryptocurrency projects. Regulators in Singapore and Hong Kong have launched investigations into World over concerns ranging from unauthorized token sales to data privacy violations. Hong Kong’s Privacy Commissioner issued an enforcement notice in May 2024 ordering World to cease operations in the region.
Similar scrutiny has emerged in Europe and beyond. In Germany, World paused its iris-scanning operations last month, following a probe by Bavarian data protection authorities and amid hardware upgrades. Privacy regulators in France, India, and the United Kingdom have also opened inquiries or requested further information about the project. Additional investigations or regulatory pushback have taken place in Kenya and Spain, where authorities issued formal directives regarding biometric collection practices in 2023 and 2024.
World rebranded from Worldcoin in October 2024 in an effort to shift its focus beyond cryptocurrency toward a broader digital identity platform. However, the company remains under sustained scrutiny as governments assess the risks posed by biometric data collection coupled with financial incentives.
China’s MSS advisory signals that these concerns are not limited to data privacy but are now being viewed as matters of national security. The move may foreshadow further enforcement or regulatory action against companies collecting sensitive biometric information under ambiguous pretenses.
Sources: CoinDesk, Cointelegraph, Reuters, TechCrunch
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By the ID Tech Editorial Team
