Worldcoin was ordered to halt operations in Hong Kong after investigations revealed that the company violated data privacy laws.
According to the privacy watchdog in Hong Kong, the Worldcoin project will cease operations in the region. The recent demand follows a probe into the company that started earlier this year.
The Hong Kong ban adds to the growing number of regions where Worldcoin has been forced to stop operating. The project usually collects iris and facial images from the public through iris-scanning devices to generate a unique ID.
However, collecting sensitive biometric data has landed the company at loggerheads with privacy watchdogs. Among the issues mentioned include how the collected data is processed and used.
Hong Kong Says Worldcoin Violated Privacy Laws
Hong Kong’s privacy commissioner noted that the watchdog had visited the company’s location six times. Towards the end of January, the regulator used court warrants to raid these locations and collect evidence.
According to the privacy regulator, Worldcoin lured participants with free cryptocurrency to collect iris scans and facial data. The collection of such data was a privacy concern.
The region’s privacy chief, Ada Chung, noted that Worldcoin’s operations in Hong Kong failed to comply with data protection laws. Moreover, the company’s requirement for participants to submit facial and iris scans was “unnecessary and excessive.”
The regulator also accused Worldcoin of failing to submit the necessary documents, such as a biometric data consent form or a privacy notice. The company also should have informed those submitting their data about the potential risks of sharing such sensitive information.
Vast Presence In Hong Kong
Despite the recent ban, Worldcoin had already collected biometric data from more than 8,000 people. Besides collecting biometric data, the project’s crypto wallet app, World App, also has a solid presence in Hong Kong. The wallet has more than a million active users and over four million downloads in the region.
The project, associated with the CEO of OpenAI, Sam Altman, has faced similar allegations in other countries for failing to abide by the existing regulatory framework.
Worldcoin has often come to the defense of its operations. The company claims to abide by the applicable laws and regulations related to personal information. Besides that, it has also claimed that the collected data is processed without violating privacy data laws.
