Regulation
Hong Kong privacy watchdog accuses Worldcoin of violating data laws
Hong Kong’s privacy regulator found that Worldcoin was in violation of local privacy laws and forced the Worldcoin Foundation to cease all operations in the region.
World Currencyan iris biometric cryptography startup co-founded by OpenAI chief executive Sam Altman has found itself embroiled in controversy over its data collection practices in Hong Kong.
According to a report released by the Office of the Privacy Commissioner for Personal Data (PCPD) on May 22, the project was found to contravene Hong Kong’s Personal Data (Privacy) Ordinance, posing risks for privacy associated with the way the San Francisco-based startup manages biometric data.
Privacy Commissioner Ada Chung Lai-ling said facial and iris images collected by the Worldcoin project were “unnecessary and excessive,” violating local requirements.
The results showed that Worldcoin’s data collection practices were unfair and lacked transparency, as the privacy notice and biometric data consent form were not available in Chinese, the PCPD said, adding that the operators had not properly explained the documents to the participants. Worldcoin’s retention of personal data for up to 10 years was also deemed excessive.
“The retention period was too long and amounted to prolonged retention of personal data. »
Ada Chung
Additionally, Worldcoin also appears to have failed to inform participants of their rights to access and correct data, further violating privacy laws. As a result, the Privacy Commissioner issued an enforcement notice ordering Worldcoin to “cease all operations of the Worldcoin Project in Hong Kong with respect to scanning and collecting images of irises and faces of members of the public using iris scanning devices.”
According to the PCPD investigation, more than 8,300 people in Hong Kong had their biometric data analyzed to receive WLDs, tokens designed to facilitate global transactions within the Worldcoin ecosystem. As of press time, Worldcoin has not made any public statement on the matter.
Founded in 2019 by Sam Altman, Max Novendstern and Alex Blania, Worldcoin is a crypto project aiming to create a global digital identity platform using iris scanning technology. In May 2023, the project secure $115 million in a Series C funding round led by Blockchain Capital with participation from Andreessen Horowitz (a16z), Bain Capital Crypto and Distributed Global.