YEREVAN (CoinChapter.com) — The Office of the Privacy Commissioner for Personal Data (PCPD), Hong Kong’s privacy watchdog, has ordered Worldcoin, a cryptocurrency project founded by OpenAI CEO Sam Altman, to stop operating in the region. Notably, the regulator accused Worldcoin of collecting face and iris scans unnecessarily and excessively following a detailed investigation that revealed significant privacy violations.
Worldcoin Violed the Privacy of 8,000 People
The PCPD conducted ten covert visits to six Worldcoin locations in Hong Kong between December 2023 and January 2024, discovering they had scanned the faces and irises of more than 8,000 people. The agency noted Sam Altman’s firm breached multiple rules regarding the purpose and manner of data collection.
For instance, PCPD emphasized that Worldcoin’s privacy notice and biometric data consent form were unavailable in Chinese. Additionally, the agency accused the firm’s staff of not adequately explaining the documents or confirming that participants understood them, leading to insufficient informed consent from users.
Originally, Worldcoin wanted to retain the collected data for up to 10 years to train AI models for user verification. For the PCPD, this retention period appeared unjustified and excessive. The agency pointed out that there were “less privacy-intrusive means” for verifying participants’ identities.
Sam Altman Will Build a “Personal Custody” Solution
Following PCPD’s enforcement notice, Worldcoin has removed all banners and logos from its offices in Hong Kong. The project maintains that the personal data collected is encrypted and safe. However, it has faced similar scrutiny in other countries, including Spain, Portugal, and Kenya, over its biometric data collection practices.
In March, Worldcoin announced it would cease collecting personal data and introduce a feature called “Personal Custody.” This feature claims to allow users to store their data on their devices. Despite these efforts, the project continues to face challenges in various jurisdictions.
