Hong Kong Regulator Orders Worldcoin to Cease Operations Over Privacy Concerns

The Hong Kong privacy regulator has ordered Worldcoin to stop collecting biometric data, citing unnecessary and excessive privacy violations. This is a significant setback for the global identity project.

Worldcoin, Co-Founded by OpenAI CEO Sam Altman, Faces Scrutiny Over Biometric Data Practices in Hong Kong

In a recent report by Reuters, Sam Altman, CEO of OpenAI, co-founded Worldcoin, a project that has set out to use biometric data to create a global identity and financial network. The scale of their operations is staggering, with their 'orb' devices having scanned the iris of over 5 million people in more than 160 different nations. However, the program has faced significant criticism for collecting, storing, and using personal data.

In January, the PCPD conducted investigations at six Worldcoin-related locations in Hong Kong, following clandestine visits in December and January. The watchdog discovered that users had to authorize iris scanning to prove their "humanness" and produce iris codes before acquiring a "digital passport" known as a World ID. Users could then receive Worldcoin tokens, or WLD, and utilize them within the Worldcoin ecosystem.

Worldcoin's Data Practices in Hong Kong Violated Privacy Laws, Retained Personal Data for Ten Years, Says PCPD

The PCPD discovered 8,302 people had their faces and irises scanned during Worldcoin's operations in Hong Kong. Privacy Commissioner Ada Chung said Worldcoin's data-gathering activities violated the Personal Data (Privacy) Ordinance, including regulations governing data collection, retention, transparency, and access and rectification rights.

"The face and iris images collected by the Worldcoin project were unnecessary and excessive," Chung stated. According to Finance Feeds, the regulator also said Worldcoin's privacy notice and biometric data permission form were unavailable in Chinese. Employees needed to appropriately explain the papers to participants, resulting in a need for more transparency.

The PCPD's investigation revealed a disturbing fact: Worldcoin was retaining personal data for up to ten years. The company justified this extended data retention period as necessary for developing artificial intelligence models for user verification. However, the PCPD deemed this retention term "too long," highlighting the severity of the privacy violations.

Chung advised the public to report any ongoing iris scanning services provided by Worldcoin. According to local accounts, all Worldcoin banners and emblems were removed from the company's office in Jordan on May 22, afternoon.

Photo: Microsoft Bing

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