Worldcoin Under Fire? Beijing Warns of Crypto Biometric Data Risks

China’s Ministry of State Security (MSS) has issued a stark warning over the misuse of biometric data, singling out foreign companies that incentivize iris scans with crypto rewards, such as Worldcoin.

While the agency did not name any firm directly, the description closely mirrors the operations of Worldcoin, the controversial crypto project co-founded by OpenAI CEO Sam Altman.

In a post on its official WeChat account, the MSS outlined a case in which a foreign entity offered crypto tokens to individuals in exchange for scanning their irises across multiple countries. The agency said the biometric information was later transferred overseas, raising what it described as significant concerns for both personal privacy and China’s national security.

Deepfake

Surveillance and Deepfake Threats

The MSS’s advisory warned that such data could be exploited for malicious purposes, including espionage. It cited instances where stolen facial data was allegedly used by foreign intelligence services to generate deepfake identities, enabling operatives to infiltrate secure facilities.

The statement comes amid growing global scrutiny of Worldcoin’s business model, which aims to build a worldwide digital identity network using iris biometrics. 

The project has already faced regulatory action in Germany, France, and Kenya, where authorities have raised red flags over informed consent, data storage practices, and the broader surveillance risks tied to such sensitive information.

Worldcoin (WLD) Price Reaction

Following the advisory, Worldcoin’s native WLD token traded at $0.93, down 4% in the past 24 hours. The decline follows months of volatility for the token as the project navigates regulatory hurdles and public skepticism.

WLD price chart

WLD price chart (Source: CoinGecko)

The MSS urged Chinese citizens to be vigilant in protecting their biometric information, particularly against offers from overseas firms promising financial incentives. The ministry framed the issue as a matter of national security, noting that “personal data in the wrong hands can become a weapon.”

Author

  • Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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Steven Walgenbach

Steven's passion for cryptocurrency and blockchain technology began in 2014, inspiring him to immerse himself in the field. He notably secured a top 5 world ranking in robotics. While he initially pursued a computer science degree at the University of Texas at Arlington, he chose to pause his studies after two semesters to take a more hands-on approach in advancing cryptocurrency technology. During this period, he actively worked on multiple patents related to cryptocurrency and blockchain. Additionally, Steven has explored various areas of the financial sector, including banking and financial markets, developing prototypes such as fully autonomous trading bots and intuitive interfaces that streamline blockchain integration, among other innovations.

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