Hong Kong Orders Halt to Worldcoin Operations

[UPDATE 05/23/24: This story has been updated to include a response from Worldcoin.]

Hong Kong’s privacy watchdog has concluded a three-month investigation into Worldcoin, resulting in a directive for the company to cease operations in the state.

Initiated on January 31, the probe by the Office of the Privacy Commissioner for Personal Data (PCPD) sought to determine if Worldcoin had breached the Privacy Ordinance during its collection and processing of sensitive personal data.

The investigation revealed that Worldcoin collected face and iris images from 8,302 individuals, which the PCPD deemed “unnecessary and excessive.” The privacy watchdog also criticized Worldcoin for not providing essential documents, such as a required “Private Notice” and “Biometric Data Consent Form,” in the Chinese language, thereby making the data collection process unfair.

The PCPD also noted that Worldcoin failed to clarify whether the submission of personal data was mandatory or voluntary, further violating the Privacy Ordinance.

As a result, Worldcoin has been ordered to shut down its business in Hong Kong.

Worldcoin has faced intense regulatory scrutiny due to its biometric data collection practices elsewhere—though a recent audit by Trail of Bits confirmed that Worldcoin’s iris-scanning devices, called “Orbs,” securely handle biometric data using robust encryption methods, even as further security improvements were suggested​.

The French data protection authority, CNIL, launched an investigation into the legality and consent practices of Worldcoin’s data collection methods, while similar concerns have been raised by regulators in Germany and the UK, focusing on the potential security risks associated with the collection of sensitive biometric data​​.

In a statement, the Worldcoin Foundation emphasized its adherence to the laws and regulations of every jurisdiction in which it operates.

“Worldcoin Foundation is disappointed by the views recently released by the regulatory authorities in Hong Kong. Worldcoin operates lawfully and is designed to be fully compliant with all laws and regulations governing data collection and use, including the Personal Data (Privacy) Ordinance of Hong Kong, among many other similar statutes across other markets,” the company said. “In an effort to prepare humanity for the age of AI, the Foundation continues to raise the privacy bar through data minimization, user control over data and advanced technology such as personal custody, iris code deletion, and secure multi-party computation. Unfortunately, the authorities in Hong Kong overlooked these aspects in their evaluation of the humanness verification process.”

Worldcoin recently announced the launch of “World Chain,” a new blockchain platform designed to enhance its digital ID system by optimizing transaction processes and prioritizing verified human users, an initiative that aims to improve transaction efficiency and scalability while maintaining security and privacy standards​.

Source: Dailycoin

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May 22, 2024 — by Tony Bitzionis