Hong Kong’s privacy watchdog has thrown a wrench into the plans of Worldcoin, a cryptocurrency project seeking to distribute tokens based on iris scans. The Office of the Privacy Commissioner for Personal Data (PCPD) concluded that Worldcoin’s practices violated the city’s Personal Data (Privacy) Ordinance (PDPO).
The PCPD launched its investigation in January 2024, scrutinizing Worldcoin’s identity verification methods. Concerns centered on whether the iris scanning process posed a significant risk to the privacy of Hong Kong residents and adhered to PDPO regulations.
Undercover Investigation Reveals Loopholes
The PCPD conducted undercover visits across six Worldcoin operation sites between December 2023 and January 2024. They discovered several discrepancies with data collection practices. Here’s a breakdown of the key findings:
- Unnecessary Facial Scans: The PCPD deemed facial scans unnecessary for verifying participants’ humanity, as iris scanning operators could perform this task visually. Worldcoin’s additional facial scan collection amounted to an unjustified data grab.
- Lack of Informed Consent: Worldcoin’s privacy notice wasn’t available in Chinese, hindering non-English speakers from fully understanding project policies, practices, and terms. The PCPD further revealed that operators failed to adequately explain the process to participants and neglected to inform them of potential risks associated with biometric data disclosure.
Unfair Data Collection Practices Trigger Enforcement
These findings led the PCPD to deem Worldcoin’s collection of face and iris scans unfair and unlawful, violating Hong Kong’s data protection principles. The retention of sensitive biometric data for up to 10 years solely for AI model training was also deemed excessive and unjustified.
Also Read: Worldcoin (WLD) Stumbles: Can Bulls Break Through Resistance or Face Further Downturn?
Privacy Concerns Plague Worldcoin Globally
This isn’t the first time Worldcoin has faced regulatory hurdles. The project, which boasts over two million sign-ups, has encountered similar privacy concerns in Kenya (suspension of services) and India (pausing of iris scans).
Worldcoin confirmed that over 8,300 individuals in Hong Kong underwent face and iris scans for verification purposes. The PCPD has issued an enforcement notice, ordering Worldcoin to immediately halt all project operations in Hong Kong that involve the collection of biometric data.
This development serves as a stark reminder for companies operating in the digital space: prioritizing user privacy and adhering to local regulations are paramount for successful international expansion.
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