The People's Republic of China announced that a foreign company is collecting users' iris data in exchange for cryptocurrency, posing a serious threat to national security. The statement released by China's Ministry of State Security (MSS) did not name the company, but the activities described are believed to point to the "World" project, formerly known as Worldcoin.
Iris scanning in exchange for cryptocurrency: A global threat?
According to information shared by MSS on WeChat, a foreign company collected the iris data of individuals worldwide under the promise of distributing cryptocurrency. The transfer of this biometric data abroad threatens not only personal privacy but also China's national security.
Authorities emphasized that iris recognition, in particular, is a highly accurate biometric method used in sensitive areas. This makes this data attractive for malicious use. The MSS stated, "The leakage of such biometric data could have irreversible consequences," and urged the public to remain vigilant.
Worldcoin in the news: China targeted without naming it
While the statement did not mention the company by name, the activities mentioned directly resemble Worldcoin's business model. Founded by OpenAI CEO Sam Altman, Worldcoin aims to scan users' iris data to create unique identities and distribute WLD tokens in return. While the company claims to operate in 160 countries to date, it has no official operations in China.
Worldcoin has previously been the subject of investigations in countries such as Indonesia, Kenya, and France for data privacy reasons. Indonesia suspended the project's operating license in May. The company announced that it had halted its identity verification services in that country and was working to clarify relevant regulations.
China's harsh stance on cryptocurrency continues
The Chinese government has long maintained a harsh stance against cryptocurrencies and related technologies. Both cryptocurrency trading and mining are banned in the country. However, this latest statement raises concerns about technological surveillance to a new level.
In its statement, MSS highlighted the misuse of not only iris recognition but also other biometric technologies such as facial recognition and fingerprints. It cited examples of foreign intelligence agencies using facial data to create fake identities and thus infiltrate strategic institutions. In the shadow of these discussions, Ethereum co-founder Vitalik Buterin has proposed more inclusive and privacy-respecting digital identity systems. His "pluralistic identity" model, presented in June, advocates for a decentralized identity structure where states, social networks, and community-based systems work together.
According to Buterin, a single, traceable digital identity model threatens individual privacy, while methods like "proof of wealth" produce unfair outcomes. In this context, multiple verification systems are emerging as an alternative to projects like Worldcoin.
