Worldcoin accused of violating data laws by privacy watchdog
Hong Kong’s privacy regulator has discovered that the Worldcoin Foundation, a cryptocurrency startup co-founded by Sam Altman, has violated local privacy laws and has ordered the foundation to halt all activities in the region.
Worldcoin, a biometric crypto project centered around iris recognition technology, has become embroiled in a controversy regarding its data collection practices in Hong Kong. On May 22, the Office of the Privacy Commissioner for Personal Data (PCPD) released a report stating that the project infringes upon Hong Kong’s personal data (privacy) ordinance and poses privacy risks due to the way the San Francisco-based startup handles biometric data.
Ada Chung Lai-ling, the Privacy Commissioner, stated that the face and iris images collected by the Worldcoin project were deemed “unnecessary and excessive,” thus violating local regulations. The investigation revealed that Worldcoin’s data collection practices were unfair and lacked transparency, as the relevant privacy notice and biometric data consent form were not available in Chinese. Furthermore, the operators failed to adequately explain these documents to participants. The retention of personal data for up to 10 years was also deemed excessive.
In addition to these violations, Worldcoin failed to inform participants of their rights regarding data access and correction, further infringing upon privacy laws. As a result, the Privacy Commissioner issued an enforcement notice directing Worldcoin to cease all operations related to the scanning and collection of iris and face images of the public using iris scanning devices in Hong Kong.
According to the PCPD’s investigation, over 8,300 individuals in Hong Kong had their biometric data scanned in order to receive WLD tokens, which are intended to facilitate global transactions within the Worldcoin ecosystem. As of now, Worldcoin has not made any public statements regarding this matter.
Worldcoin, founded in 2019 by Sam Altman, Max Novendstern, and Alex Blania, aims to create a global digital identity platform utilizing iris recognition technology. In May 2023, the project secured $115 million in a Series C funding round led by Blockchain Capital, with participation from Andreessen Horowitz (a16z), Bain Capital Crypto, and Distributed Global.
Read more: Worldcoin to remove iris codes from World IDs upon user request
