China’s Security Alert Targets Worldcoin’s Biometric Data Collection

On August 6, 2025, China’s Ministry of State Security issued a warning via WeChat about biometric data risks from a foreign company linked to cryptocurrency token distribution.

This advisory highlights concerns over personal and national security, affecting cryptocurrency perceptions and prompting scrutiny of biometric data collection practices globally.

China’s Security Concerns Over Worldcoin’s Iris Data Collection

China’s Ministry of State Security stressed the potential dangers of allowing foreign entities to collect biometric data. This action is perceived as direct scrutiny of Worldcoin, co-founded by Sam Altman and known for offering crypto tokens in exchange for iris scans. Users are urged to be cautious with their biometric information due to inherent privacy risks. Biometric data is irreversible, making its protection crucial. As the Ministry of State Security warns, “Scrutinize the legitimacy of any entity requesting biometric data and… avoid sharing such information unless absolutely necessary.”

The notice also highlights the irreversible nature of biometric data sharing. Vitalik Buterin, Ethereum’s co-founder, has previously warned about digital identity systems focusing on privacy. However, neither Worldcoin nor Altman have addressed the allegations publicly, leaving a gap in leadership responses on such issues.

Community reactions include concerns over potential misuse of biometric data. Discussion on platforms such as Twitter highlights the risks of “irreversible breaches,” though no official responses from Worldcoin were noted. Global regulators and industry experts have not issued new advisories, leaving the warning largely a national security alert.

Worldcoin Faces Scrutiny Amid International Privacy Concerns

Did you know? Concerns over data privacy led to Worldcoin facing scrutiny and temporary bans across multiple countries, including the EU and Kenya, between 2023 and 2024.

Worldcoin (WLD) currently trades at $0.94 with a market cap of $1.73 billion and a 24-hour trading volume of $177.07 million, marking a 10.25% decrease from yesterday. Over the past 60 days, Worldcoin’s price fell by 17.04%, reflecting market volatility. Source: CoinMarketCap.

Coincu’s research team suggests potential implications for Worldcoin involve increased regulatory scrutiny and possible operational interruptions in key markets. China’s focus on advancing its economy highlighted in recent tweets indicates a growing trend of countries tightening data privacy regulations. Experts emphasize the significance of adopting secure data practices to prevent misuse and embrace transparency, fostering trust within the crypto community.