The Hong Kong privacy watchdog has ordered Sam Altman’s Worldcoin project to stop all activities in the region, including the collection of iris and facial images from the public using scanning devices. An investigation into Worldcoin’s practices concluded that the company had violated data privacy laws. The watchdog visited Worldcoin’s locations multiple times and ultimately raided them to gather evidence of the data collection activities. Worldcoin has not responded to requests for comment on the matter.
Worldcoin offered free cryptocurrency in Hong Kong in exchange for iris scans and facial recognition to verify the identities of individuals. Over 8,000 people had their scans taken during the operation, raising privacy concerns. Hong Kong’s privacy chief ruled that Worldcoin’s operations were in violation of the territory’s data protection laws, as the collection of facial and iris images was deemed unnecessary and excessive. Additionally, the investigation found that Worldcoin’s data collection system was unfair and lacked essential documentation.
Despite the privacy concerns raised by the Hong Kong privacy watchdog, Worldcoin saw significant popularity in the region with its launch in July 2023. The World App, a crypto wallet app associated with Worldcoin, garnered over a million active users and surpassed 4 million downloads within six months of its launch. A Worldcoin spokesperson previously stated that the project is committed to adhering to relevant laws and regulations regarding personal data protection.
The Worldcoin project’s collection of biometric data in exchange for free cryptocurrency has triggered privacy concerns among regulators in Hong Kong. The project’s practices have been deemed unfair and excessive, leading to the suspension of all activities in the region. The investigation revealed that Worldcoin failed to provide essential documents in Chinese, the primary language in Hong Kong, and did not adequately inform participants about the risks associated with surrendering biometric data.
Worldcoin’s rapid growth in Hong Kong was driven by the popularity of its crypto wallet app, the World App. However, the project’s success has been overshadowed by the privacy controversy surrounding its data collection practices. The Hong Kong privacy watchdog’s enforcement actions highlight the importance of compliance with data protection laws, particularly in the context of emerging technologies such as biometric scanning. Worldcoin now faces the challenge of addressing privacy concerns and rebuilding trust with users and regulators in Hong Kong.
