Hong Kong authorities have banned the Web3 project, Worldcoin, from operating in the country.
The Hong Kong Office of the Privacy Commissioner for Personal Data (PCPD) claimed that Worldcoin violated the region’s privacy regulations.
Worldcoin Under Fire: Hong Kong Regulators Step In
Worldcoin is a crypto project that scans and collects users’s faces and iris images. The project has faced intense scrutiny and setbacks for its alleged privacy violations. Hong Kong’s regulators ordered Worldcoin to cease all scanning operations of users within the city.
Worldcoin has reportedly scanned 8,302 people for verification during its operation in Hong Kong. So, authorities claimed that some of the images and details collected by Worldcoin were unnecessary. In addition, regulators noted that some of these images were taken unfairly.
Source: PCPD
So, the PCPD began its investigation into Hong Kong early this year. The investigation sought to ascertain if Worldcoin’s data collection posed a risk to user privacy and public safety. PCPD officials conducted at least ten covert visits to six Worldcoin sites from December 2023 to January 2024. The findings showed that Worldcoin failed to provide detailed information. And the verification process did not support genuine consent.
The investigation also claimed Worldcoin’s privacy notice was not written in Chinese. So, locals were unable to understand the company’s policies, terms, and conditions. The PCPD said in its report: “The iris scanning device operators at the operating locations also did not offer any explanation or confirm the participant’s understanding of the aforesaid documents. They also did not inform the participants of the possible risks pertaining to their disclosure of biometric data, nor answered their questions.”
Here is what the Worldcoin Foundation said: “Worldcoin Foundation is disappointed by the views recently released by the regulatory authorities in Hong Kong. Worldcoin operates lawfully and is designed to be fully compliant with all laws and regulations governing data collection and use, including the Personal Data (Privacy) Ordinance of Hong Kong, among many other similar statutes across other markets. In an effort to prepare humanity for the age of AI, the Foundation continues to raise the privacy bar through data minimization, user control over data and advanced technology such as personal custody, iris code deletion, and secure multi-party computation. Unfortunately, the authorities in Hong Kong overlooked these aspects in their evaluation of the humanness verification process.”
Regulatory Setbacks
Hong Kong isn’t the only region to have expressed concerns about Worldcoin’s operations. Authorities in India paused iris scans, while Kenyan authorities suspended the project. Worldcoin isn’t available in the US due to regulatory concerns.
Source: X
Despite these setbacks, Worldcoin has continued to expand, recently moving to Peru. The team has also struck new partnerships. And they also launched their Layer 2 platform on Ethereum.
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