Hong Kong’s privacy watchdog has determined that Worldcoin violated local privacy laws and has ordered the Worldcoin Foundation to halt all activities in the region.
Worldcoin, a startup focused on iris biometric technology co-founded by Sam Altman, CEO of OpenAI, is facing backlash over its data collection methods in Hong Kong. A report issued by the Office of the Privacy Commissioner for Personal Data (PCPD) on May 22 revealed that the project infringed upon Hong Kong’s personal data ordinance, putting individuals’ privacy at risk due to the way the San Francisco-based startup manages biometric data.
Privacy Commissioner Ada Chung Lai-ling stated that the collection of face and iris images by the Worldcoin project was deemed “unnecessary and excessive,” violating local regulations. The investigation discovered that Worldcoin’s data collection procedures were unfair and lacked transparency, as important documents were not available in Chinese, and participants were not adequately informed. Retaining personal data for up to a decade was also deemed excessive.
Furthermore, Worldcoin failed to inform individuals of their rights to access and correct their data, further violating privacy laws. Consequently, the Privacy Commissioner issued an enforcement notice demanding that Worldcoin cease all operations in Hong Kong involving the scanning and collection of iris and face images of the public using iris scanning devices.
According to the PCPD’s findings, over 8,300 individuals in Hong Kong had their biometric data scanned to receive WLD tokens, which are designed to facilitate transactions within the Worldcoin ecosystem. As of now, Worldcoin has not made any public statements regarding the situation.
Established in 2019 by Sam Altman, Max Novendstern, and Alex Blania, Worldcoin aims to create a global digital identity platform using iris scanning technology. In May 2023, the project raised $115 million in a Series C funding round led by Blockchain Capital, with participation from Andreessen Horowitz (a16z), Bain Capital Crypto, and Distributed Global.
For more information, Worldcoin plans to remove iris codes from World IDs upon user request.