HK privacy watchdog orders crypto project Worldcoin to cease operations

Hong Kong's privacy watchdog has requested cryptocurrency project Worldcoin(世界幣) to cease operations in Hong Kong as it violates the city's Personal Data (Privacy) Ordinance (PDPO) in six aspects.

Don’t miss: HK privacy watchdog opens probe into Worldcoin amidst iris-scanning fears

Worldcoin confirmed that there were 8,302 people with their faces and irises scanned for verification during its operation in Hong Kong.

The PCPD considered that the face and iris images collected by the Worldcoin project were unnecessary and excessive, contravening the requirements of purposes of collecting personal data. 

The project collected personal data unfairly, the PCPD added. In particular, the relevant “privacy notice” and “biometric data consent form” were not available in Chinese. The iris scanning device operators also did not provide any explanation, confirm the participants' understanding of the documents, or inform participants of the potential risks of disclosing their biometric data.

Meanwhile, the PCPD said participants were not clearly informed of the information as specified under the PDPO on or before the collection of personal data. These include the purposes of collection, whether it was obligatory or voluntary for them to supply their personal data, and the right and means to request access to and correction of their personal data.

While Worldcoin would retain personal data for a maximum of 10 years to train AI models for the user verification process, the PCPD considered that the retention period was too long.

Apart from that, the PCPD considered that Worldcoin lacked transparency in its personal data policy and practices, and participants did not have the means to exercise their rights of data access and correction.

The PCPD said the privacy commissioner has served an enforcement notice on the Worldcoin Foundation, directing it to cease all operations of the Worldcoin project in Hong Kong in scanning and collecting iris and face images of members of the public using iris scanning devices.

Privacy Commissioner Ada Chung has advised the public to report to the PCPD if they notice that Worldcoin is still operating at any premises with the iris scanning devices in Hong Kong.

This comes following Office of the Privacy Commissioner for Personal Data (PCPD)'s latest investigation into Worldcoin, where participants needed to provide their iris information through iris scanning (虹膜掃描) to obtain a registered identity. After that the participants would receive free cryptocurrency Worldcoin tokens.

The PCPD carried out 10 covert visits from December 2023 to January 2024 at six premises of the Worldcoin project in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay. It also issued court warrants and entered the premises to conduct on-site investigation. 

The Worldcoin Foundation, founded by OpenAI CEO Sam Altman, claims its open-source protocol is designed to provide universal access to the global economy, according to the project's website. It aims to become the world's largest digital identity and financial network, providing universal access to the global economy regardless of country or background. It strives to create a space where every individual can benefit in the age of AI.

“Worldcoin was established to help create access and participation in the global digital economy while preserving privacy. Worldcoin does not seek to know who a person is, just that they are human and unique. As such, any information used to verify unique humanness is promptly deleted by default," said the Worldcoin Foundation in a previous statement to MARKETING-INTERACTIVE.

MARKETING-INTERACTIVE has reached out to the Worldcoin Foundation and the PCPD respectively for a statement. 

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