Worldcoin's Office in Hong Kong is Under Investigation

According to Wu Blockchain, on the evening of January 31, 2024, the Privacy Commissioner for Personal Data (PCPD) conducted surprise checks on six Worldcoin stores in Hong Kong, following a court order, amid suspicions that the project may violate the Personal Data (Privacy) Ordinance (PDPO).

PCPD investigated and requested documentation from six Worldcoin stores located in prominent areas of Hong Kong, including Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay.

The Hong Kong Privacy Commissioner's Office today entered six Worldcoin shops in Hong Kong to conduct an investigation based on a court warrant, and stated that Worldcoin involves serious personal data privacy risks and may involve violations of the Privacy Ordinance.…

— Wu Blockchain (@WuBlockchain) January 31, 2024

Worldcoin (WLD) is a cryptocurrency project launched in 2021 by Sam Altman, who is also the CEO of OpenAI, the company behind the AI tool ChatGPT. The project initiated its “iris scanning” identification platform in Hong Kong in 2023.

The Worldcoin project utilizes blockchain technology to establish a digital identity system called World ID, which can be viewed as a global digital passport.

Users in Hong Kong, after registering accounts and scanning their irises using Orb to obtain World ID, would receive 25 free WLD tokens, the project’s native token. With the bold concept and the allure of “free money,” the project quickly attracted a large number of users, forming long queues to “sell” personal data.

PCPD considers iris scanning as a form of biometrics, similar to fingerprints, and believes it may contain sensitive personal data. Therefore, iris scanning is considered a data collection activity that could lead to PDPO violations.

Additionally, Privacy Commissioner Ada Chung Lai-ling has urged the public to be cautious about the World Coin project, especially in protecting personal data and exercising caution when participating in data collection activities such as iris scanning.

Individuals or organizations using data must comply with PDPO requirements and data protection regulations during collection, retention, processing, or usage in Hong Kong.

If participating, citizens should carefully consider:

The legality of biometric data collection.
Understanding the purpose of biometric data collection by organizations, including how personal information will be used or transferred.
The duration for which biometric data will be retained.
Security measures and safeguards to protect users’ biometric data.

This is not the first time Worldcoin has faced “warnings” for posing risks to individual privacy. Kenya, a country that was a focal market for the project, has completely banned Worldcoin’s operations. Earlier, the governments of Germany, France, and the UK also evaluated risks associated with the project.

Chart Worldcoin (WLD)

The 4-hour chart for the WLD/USDT trading pair on TradingView. Snapshot taken at 4:21 PM on February 1, 2024.