Hong Kong has ordered the suspension of Worldcoin’s operations, citing serious privacy violations. The Office of the Privacy Commissioner for Personal Data (PCPD) issued the directive following an investigation into Worldcoin’s data collection practices, which were found to be non-compliant with local privacy laws.
Worldcoin, a cryptocurrency project that aims to create a globally inclusive financial system by distributing free tokens, has faced scrutiny over its methods of obtaining biometric data. The project requires users to provide iris scans to verify their identities, raising significant privacy concerns.
According to the PCPD, Worldcoin’s data collection practices lack sufficient transparency and fail to obtain proper consent from users. “The collection of sensitive biometric data must adhere to stringent privacy standards, and Worldcoin has not demonstrated adequate compliance with these requirements,” stated a PCPD spokesperson.
The suspension order mandates Worldcoin to cease all data collection activities in Hong Kong immediately and to secure the biometric data already collected. The PCPD is also considering further enforcement actions, which could include fines or other penalties if the company fails to comply.
This move by Hong Kong authorities reflects the growing global scrutiny of data privacy practices in the cryptocurrency industry. Regulators worldwide are increasingly focusing on how companies handle personal and sensitive information, particularly in emerging tech sectors like digital currencies and blockchain.
Worldcoin has responded to the suspension by expressing its commitment to resolving the issues raised by the PCPD. “We are dedicated to working with Hong Kong regulators to address their concerns and ensure our data collection processes meet all legal and ethical standards,” a Worldcoin representative said.
The suspension in Hong Kong follows similar regulatory challenges faced by Worldcoin in other jurisdictions. The company is under pressure to enhance its privacy safeguards and transparency to align with global data protection standards.
In summary, Hong Kong has halted Worldcoin’s operations due to privacy violations, highlighting the increasing regulatory focus on data protection in the cryptocurrency sector. Worldcoin must now address these concerns to resume its activities in the region.
