Crypto banned for collecting “unfair” facial and iris data

Cryptocurrency project Worldcoin was ordered to shut down in Hong Kong after the privacy watchdog found it had violated the Personal Data (Privacy) Ordinance by collecting images of the face and iris.

Worldcoin, founded by OpenAI chief Sam Altman in 2019, collects iris information in exchange for digital identification to distinguish humans from robots online.

The project has sparked privacy concerns around the world, with several countries considering banning it.

The Privacy Commissioner for Personal Data said yesterday that Worldcoin scanned the faces and irises of 8,302 people in Hong Kong and collected unnecessary information in an “unfair” manner.

The watchdog said it made 10 secret visits between December last year and January to six Worldcoin premises – Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central and Causeway Bay – and searched the premises with arrest warrants on January 31.

A survey found that participants had to have their facial and iris images scanned to verify that they were human and generate codes. They then obtained a “digital passport” called World ID and received free Worldcoin tokens at regular intervals.

Privacy Commissioner Ada Chung Lai-ling found that Worldcoin’s operations in Hong Kong violated data protection principles relating to collection, retention, transparency, access data and rights of rectification.

She also said the facial and iris images collected by Worldcoin were unnecessary and excessive and were made “unfairly.”

The watchdog added: “The corresponding ‘privacy notice’ and ‘biometric data consent form’ were not available in Chinese, and the operators of the scanning devices at the operating sites did not nor did they offer an explanation or confirm participants’ understanding of the documents.

“They also failed to inform participants of the possible risks of disclosing biometric data, or answer their questions.”

The watchdog added that the project did not inform participants of the purpose of the data collection, whether it was mandatory or voluntary, or who could obtain it.

“Worldcoin would retain personal data for a maximum of 10 years to train AI models for the user verification process. The Privacy Commissioner considered the retention period to be too long,” it said. declared, adding that participants did not have the means to exercise their rights. access and correction of data.

The watchdog issued an enforcement notice to the Worldcoin Foundation, requiring it to cease all operations in the city and stop scanning and collecting iris and facial images.

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