The Chinese State Security Ministry (MSS) raised an alarm from users on a collection of biometric data of a foreign company (potential worldCoine) from users in exchange for cryptocurrency rewards, calling the practice a potential threat to both personal privacy and national security.
The warning published on Wednesday on the agency’s official WeChat account pointed to the recorded matters of the large -scale Irana collection associated with the crypto tokens.
While the MSS did not clearly name the project, the details align with the worldcon, which is a project developed by the equipment for humanity. WorldCoine has given users the atribution to create unique digital IDs to scan Iran and distribute their cryptocurrency tokens, WLDs to use their “orb” equipment.
For MSS, transfer to external institutions of these sensitive data sources “pose a risk not only for personal privacy but also to the national security of the country,” because biometric information can be potentially exploited beyond its declared purpose.
Global investigation of biometric crypto projects
China’s warning increases global investigation on biometric data collection in the digital asset industry. The WorldCoine, launched in 2023, has faced investigation and regulatory action in several courts, mainly on the concepts around data security and user consent.
In May, Indonesian authorities suspended the project’s operating permit following the reports of irregularities related to the WorldCoine’s identity verification services. The equipment for humanity later stated that the world voluntarily stopped its proof-per-passenger operations in Indonesia, while demanding clarity on license requirements.
This is not the first time China has given a voice about crypto-linked RISC. Emphasizing consumer protection and financial stability, the country has mantled strict policies on digital asset trading and early coin offers (ICOS).
Last month, Sanzhen’s financial regulator issued a cautious warning about the fraud schemes dismissed as stabechoin investment.
The MSS statement expands the scope of the concept, how the crypto intensity connected biometric data collection can cross the national security sector, especially if sensitive information.
Implications for privacy and regulation in crypto space
The latest development reflects a comprehensive debate around privacy, identity verification and decentralized finance. Projects such as WorldCoine argue that the IRIS scan enabled a second and scalable method to prove human identity online, which helps real users from automated backs to the doubles web 3 application.
Critics, how, have warned that a biometric data is collective, the risk of misuse or unauthorized access remains high, whether encrypted or anonymous.
China’s public statement shows that the country may monitor foreign crypto projects working under its jurisdiction or collect data from Chinese citizens.
It aligns with global regulatory trends, where authorities are trying to grab A amid technological innovation and conservation of sensitive personal information.
In Europe, data regulators AVE examined the activities of world coins under the General Data Protection Regulation (GDPR), while Kenya temporarily stopped the WorldCoin registration on similar secrecy concerns in 2023.
The MSS has urged the public to take precautions when contacted with a proposal to exchange personal data for the Cryptocurrency Awards.
The image created with a dull-E, chart from the tradingview
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