China’s national security agency has raised alarms over the collection of biometric data through crypto incentives, cautioning that such practices could pose serious threats to national security and personal privacy.
Biometric Data Collection Raises Red Flags
In a recent public statement, China’s Ministry of State Security (MSS) voiced concern over foreign firms offering cryptocurrency in exchange for iris scans. The advisory did not mention any specific company by name, but the description aligns closely with the practices of Worldcoin, a crypto project known for scanning users’ irises to create digital identities.
The MSS detailed a case where a company collected biometric data globally and transferred it overseas, triggering warnings about data misuse, surveillance potential, and foreign intelligence operations.
National Security Concerns Intensify
Authorities warned that biometric data, such as iris and facial scans, can be weaponized by hostile actors. According to the advisory, such information has allegedly been used in deepfake identity creation, enabling foreign intelligence operatives to bypass security systems and infiltrate restricted areas.
The ministry’s message reflects growing unease in China over the unregulated flow of sensitive personal information, especially when it involves foreign entities and blockchain-based projects.
Worldcoin Under Global Scrutiny
While not named directly, the company in question closely resembles Worldcoin, a global identity project co-founded by OpenAI CEO Sam Altman. The initiative has already faced regulatory backlash in countries like Germany, France, and Kenya, where officials have questioned the legality of its data collection and whether users fully understand how their biometric data is stored or used.
China Takes a Hardline Stance
Beijing’s warning serves as a strong signal that China will not tolerate foreign-led biometric data collection, especially when disguised as promotional crypto giveaways. The MSS emphasized that such practices could lead to data theft, espionage, and significant national security vulnerabilities.
Conclusion: Digital Identity Projects Face Global Pressure
As digital identity and cryptocurrency continue to merge, nations are becoming increasingly cautious of projects that gather biometric data. With this warning, China joins a growing list of countries taking action to protect citizens’ privacy in the digital age.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.