China’s Ministry of State Security warns against biometric data risks linked to Worldcoin’s crypto-reward program.
- China’s MSS issues a warning targeting Worldcoin’s biometric data collection.
- WLD token drops 4% to $0.93 post-announcement.
- No direct impact on major crypto assets like BTC or ETH.
On August 6, 2025, China’s Ministry of State Security issued a warning about foreign firms collecting biometric data, particularly targeting Worldcoin’s iris scan practices.
This security alert underscores growing concerns over privacy, impacting Worldcoin’s market significantly with a 4% drop in WLD token price, provoking broader data protection debates.
China’s MSS Warns Against Biometric Data Collection
China’s Ministry of State Security issued a warning against biometric data collection, hinting at implications for Worldcoin’s operations. The warning follows past scrutiny over Worldcoin’s collection of iris scans for cryptocurrency rewards.
The MSS specifically targets foreign companies incentivizing biometric submissions for cryptocurrency rewards. Though unnamed, the description aligns closely with Worldcoin’s initiative, pointing to privacy and security concerns.
“Certain overseas companies incentivize citizens to scan their irises in exchange for cryptocurrency tokens and subsequently transfer this biometric data abroad, posing a serious threat to national security and individual privacy.” – Ministry of State Security, People’s Republic of China
Worldcoin’s WLD Token Suffers 4% Market Drop
Following the warning, Worldcoin’s market value faced a 4% drop in its WLD token. The MSS bulletin has raised awareness of privacy implications surrounding biometric data usage.
Financial market reactions have been localized to WLD, with minimal spillover effects seen in major cryptocurrencies like Ethereum and Bitcoin. Privacy regulations are increasingly influencing data-related projects.
Implications for Global Data Privacy Standards
Worldcoin’s prior regulatory challenges have occurred in countries like Indonesia and Germany. These incidents mirror the current MSS warning to ensure data privacy and security standards are met.
Experts suggest potential outcomes could include enhanced regulatory scrutiny or project adaptations to align with data protection laws. Historical event patterns indicate a need for stringent compliance.
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