August 08, 2025
By Anjali Kochhar
Eyes first. Beijing has just raised a red flag, warning that some crypto projects are offering cryptocurrency in exchange for iris scans and posing a serious threat to both personal privacy and national security.
On August 6, China’s Ministry of State Security (MSS) issued a public notice cautioning against emerging biometric technologies used by overseas crypto-related ventures. The ministry highlighted iris scanning, along with facial and fingerprint recognition, as deeply sensitive. They pointed to a case in which a foreign firm collected iris data worldwide under the guise of issuing cryptocurrency tokens, then transferred that data abroad raising alarms over both personal and national security. Eyes, once scanned, cannot be reset.
Although the notice stopped short of naming the company, many observers interpreted it as a reference to Worldcoin, a controversial project co-founded by OpenAI’s Sam Altman. Worldcoin offers WLD tokens in exchange for iris scans. It claims to anonymise data and delete raw images immediately, keeping only encrypted identifiers. Critics, however, continue to raise concerns about encryption vulnerabilities, data retention practices, and the quality of user consent particularly in regions with limited data protection safeguards.
Beyond iris scanning, the MSS raised concerns about facial recognition misuse and fingerprint systems that collect and store sensitive data poorly, leaving them vulnerable to hackers. Foreign intelligence agencies, they warned, have falsified facial data for espionage, infiltrating secure environments.
The MSS urged individuals to exercise caution when asked to provide biometric data. Users should insist on clear explanations of how their data will be stored, processed, and used, and they should scrutinise privacy policies for signs of overreach or inadequate protection.
China’s warning arrives amid a broader global crackdown on biometric-crypto ventures. Regulators in several countries including Germany, Spain, Kenya, Indonesia, and Brazil have already paused operations, mandated data deletion, or banned similar initiatives due to privacy concerns.
In a world where digital promises often come with hidden costs, China’s message is clear think twice before trading your identity for tokens. Because once your eyes give away your secrets, there’s no looking back.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
