Worldcoin’s Biometric Data Collection Violates Privacy Laws: Hong Kong’s Regulator

The controversial Worldcoin project has faced another setback. Hong Kong's privacy regulator, the Office of the Privacy Commissioner for Personal Data (PCPD), has ordered Worldcoin to cease all operations in the territory, citing that its practices violate local privacy regulations.

The PCPD issued a statement this week revealing that Worldcoin had collected facial and iris biometric data from at least 8,302 individuals during its operations in Hong Kong.

After conducting 10 undercover inspections at six Worldcoin locations in December 2023 and January 2024, the agency determined that such extensive collection of biometric information was “unnecessary and excessive.” It added that such actions violate data protection principles under Hong Kong's privacy laws.

Validation of Humanity: A Puzzle

PCPD in Hong Kong pointing to It explained that Worldcoin will retain personal data for a maximum of 10 years to train AI models on the user verification process, a period that the agency believes will be “too long.” PCPD also said there are “less privacy-intrusive” alternatives to proving humanity.

It is important to note that Hong Kong is not the only region that has objected to Worldcoin and its controversial iris-scanning orbs. In fact, the project headed by Sam Altman has encountered difficulties in multiple areas with its digital ID collection. In March, South Korea launched an investigation following complaints about the project's collection of personal information. Likewise, Spain and Portugal instructed the project to stop collecting users' biometric data.

In contrast to privacy advocates who have repeatedly emphasized that Worldcoin is not a path to proof of identity, Billy Luedtke, founder and CEO of decentralized identity startup Intuition, praised the project.

Highlighting the growing importance of verifying whether information comes from human sources amid the rapid advancement of artificial intelligence, Luedtke claimed that Worldcoin and other decentralized identity projects are “actively addressing the challenge, providing tools to help individuals assert their humanity in an online world where discrimination is taking place.” “Human existence has become more complex.”

In a statement to CryptoPotatoThe CEO said,

“Although concerns about data privacy remain, the usability of the Internet is suffering due to the influx of non-human activities, lack of trust, and a fragmented identity landscape. Encouraging dialogues between governments and industries, along with innovations in privacy-preserving technologies such as personal custody , provides hope for continued progress and innovation in this field.

What does Hong Kong's rejection of Worldcoin mean for cryptocurrencies?

Jerry Lee, co-founder and CEO of Artela Network, interprets Hong Kong's cessation of Worldcoin operations as an indication of its strict and proactive stance on cryptocurrency regulation, particularly regarding data privacy and biometric data collection.

This strict approach will likely set a precedent in the Asia-Pacific region, prompting other cryptocurrency projects to prioritize data privacy and adherence to local regulations, Lee said in a statement. CryptoPotato.

However, the executive said that the move does not mean that Hong Kong is hostile to cryptocurrencies.

“Ceasing Worldcoin’s operations does not necessarily mean that Hong Kong is unfriendly towards cryptocurrencies. Although Hong Kong imposes strict data privacy regulations, it continues to support the cryptocurrency industry through clear regulations, government initiatives, strong financial infrastructure and industry support.