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Hong Kong‘s strict privacy regulations are causing headaches for the cryptocurrency Worldcoin. Privacy institutions have deemed Worldcoin’s practice of collecting facial and iris data as “unnecessary and excessive,” ruling that it violates local privacy laws. Following this decision, the Worldcoin Foundation was ordered to cease all activities in Hong Kong.
Hong Kong Takes Action Against Worldcoin
The Office of the Privacy Commissioner for Personal Data (PCPD) reported that Worldcoin collected facial and iris data from at least 8,302 individuals during its operations in Hong Kong. Secret visits to six different Worldcoin locations between December 2023 and January 2024 led PCPD to determine that these data collection methods were unnecessary and excessive. Additionally, they emphasized that these practices violated Data Protection Principles.
Observers noted that Worldcoin‘s plan to retain personal data for up to 10 years for user verification was heavily criticized by privacy institutions. PCPD argued that this duration was excessively long and that retaining personal data for such an extended period was unacceptable.
Following these developments, Worldcoin was officially instructed to halt its operations in Hong Kong. Privacy Commissioner Ada Chung called for any ongoing activities by Worldcoin to be reported to the institution. In response, Worldcoin announced it would end its personal data collection practice by March and offer users the option to store their data on their own devices. This feature, called “Personal Surveillance,” was introduced as a step towards allowing users to control and protect their data.
Worldcoin Faces Challenges in Various Locations
The issues faced by Worldcoin are not limited to Hong Kong. South Korea launched an investigation after receiving complaints about the project’s personal data collection methods, while Spain and Portugal similarly requested the cessation of biometric data collection practices. This situation is seen as an indicator of the global challenges Worldcoin is encountering.
Worldcoin’s privacy violations in Hong Kong and the subsequent decision to halt operations highlight the sensitivity of privacy and data protection issues in the cryptocurrency world. The cryptocurrency WLD was trading at $5.07 at the time of writing.
