Hong Kong Bans Worldcoin (WLD) Over Biometric Data Collection

Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) has issued a directive to halt the operations of Worldcoin (WLD) within its jurisdiction.

Hong Kong’s privacy watchdog has barred cryptocurrency project Worldcoin from operating in the Special Administrative Region (SAR).

The move comes after the Personal Data (Privacy) Commissioner found that Worldcoin’s collection of biometric data, including iris scans, contravenes Hong Kong’s data protection laws.

The Privacy Commissioner’s investigation began in January 2024 after receiving complaints about Worldcoin’s data collection practices.

The probe found that participants were required to provide face and iris images for identity verification to receive Worldcoin tokens.

However, the Commissioner determined that this data collection was excessive and unnecessary.

The Commissioner also noted that Worldcoin’s materials were not fully translated into Chinese, which is the primary language for many participants in Hong Kong.

As a result of the findings, the Privacy Commissioner has served an enforcement notice on Worldcoin Foundation, directing it to cease all operations involving the scanning and collection of biometric data in Hong Kong.

If Worldcoin fails to comply with this directive, the Commissioner may take further regulatory action, including the imposition of administrative fines or referral to the Department of Justice for criminal prosecution.

The announcement of Hong Kong’s ban on Worldcoin’s biometric data collection had a brief impact on the cryptocurrency’s price.

According to CoinGecko data, the price of Worldcoin (WLD) temporarily dropped to $4.93 before resurging to $5.12 at press time.

The sudden plunge below $5 sent shockwaves across the community of WLD holders, who are now closely monitoring the situation.

The ban adds to the challenges faced by Worldcoin, which has already encountered regulatory obstacles in other jurisdictions.

In Kenya, the government banned the project, while in Spain, Portugal, and Buenos Aires, local authorities have raised concerns over Worldcoin’s data privacy practices.

Despite the regulatory setbacks, Worldcoin's user base continues to grow.

The project's World App wallet reached 10 million users in less than a year, highlighting the demand for its cryptocurrency and Web3 identity service.

Tools for Humanity (TFH), the company behind the Worldcoin project, has made efforts to address privacy concerns.

These include the recent open-sourcing of its ORB technology and enhancements to user data control features within the World App.