May 24, 2024
By Sharan Kaur Phillora
Hong Kong’s privacy watchdog, the Office of the Privacy Commissioner for Personal Data (PCPD), has ordered Worldcoin to cease all operations in the city due to concerns over “excessive” data collection. The PCPD’s investigation revealed that Worldcoin’s requirement for users to provide face and iris scans to verify their identity was deemed “unnecessary and excessive” under Hong Kong’s privacy laws.
Here’s what we know:
Worldcoin, a cryptocurrency project co-founded by OpenAI CEO Sam Altman, faced scrutiny after the PCPD conducted ten covert visits to six premises linked to its operations in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay. These visits, which took place between December 2023 and January 2024, led to raids in late January where court warrants were executed to gather further information.
Participants in the Worldcoin project had to grant permission for iris scanning to confirm their “humanness” and generate unique iris codes to obtain a digital passport known as a World ID. This ID allowed users to receive Worldcoin tokens (WLD), which could be used within the Worldcoin ecosystem or as a form of digital currency.
The PCPD’s findings highlighted significant issues with Worldcoin’s data collection practices. The project collected sensitive biometric data, such as face and iris images, without providing adequate privacy notices or consent forms in Chinese and without ensuring participants’ understanding of the data’s usage. Moreover, Worldcoin’s retention of this data for up to ten years for AI training was deemed excessively long and a potential violation of privacy rights..
Privacy Commissioner Ada Chung emphasized that there were less intrusive methods to verify participants’ identities and criticized Worldcoin for its lack of transparency and fair data collection practices. The public has been advised to report any ongoing iris scanning activities by Worldcoin.
By Wednesday afternoon, all banners and logos of Worldcoin had been removed from its office in Jordan, reflecting the immediate impact of the PCPD’s enforcement notice.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.
