Worldcoin’s iris-scanning project faces setbacks from the Hong Kong Privacy Commissioner for violating data protection rules.
Sam Altman’s Iris-scanning project Worldcoin (WLD) is facing yet another setback, this time from the Hong Kong Office of the Privacy Commissioner for Personal Data (PCPD).
The latest development revealed that Hong Kong Privacy Commissioner Chung Lai-ling found Worldcoin in violation of the privacy ordinance. As a result, they have requested that Worldcoin immediately cease gathering data on its inhabitants’ facial and iris characteristics through its orb devices.
Hong Kong Regulator Investigates Worldcoin
The investigation concluded that Worldcoin violated several data protection rules listed in the Freedom of Information Ordinance. This category includes deficiencies in the acquisition, retention, transparency, access and correction of personal data.
We found the collection of iris and face photographs to be superfluous and excessive. Furthermore, the Personal Data Protection Act (PCPD) determined that the retention period of up to ten years for personal data, intended for artificial intelligence model training was excessively long.
Additionally, the Privacy Commissioner for Personal Data (PCPD) brought attention to the fact that Worldcoin did not comply with the legal requirement to provide participants with clear information regarding their rights and the reason for the gathering of their data.
The regulator also alleges that Worldcoin did not provide adequate information before or during the data gathering activities. Furthermore, there were no Chinese translations of the Privacy Statement or the Biometric Data Consent Form, and the staff at the operational locations did not explain or verify that the participants understood these materials.
Furthermore, Worldcoin failed to provide its members with opportunities to address their questions or warn them about the risks associated with providing their biometric data.
Regulatory obstacles have confronted Worldcoin over the past year. Regulators’ concerns have already hindered the concept’s implementation in the United States, and other global markets are now opposing it.
However, it has continued to expand its presence in other areas, such as Peru. Through the use of facial and iris scan authentication, WorldCoin was able to confirm the identities of 8,302 individuals while conducting business in Hong Kong.
People have noticed a strong movement with Worldcoin’s native cryptocurrency, WLD, particularly in relation to its presumed connection with OpenAI, Sam Altman’s artificial intelligence company.
At the moment, WLD’s price is higher than $5 and its market capitalization is greater than $1 billion. Despite encountering regulatory obstacles, Worldcoin continues to build and expand its initiative.
One month ago, the iris-scanning project announced the launch of its Layer-2 platform on Ethereum, named World Chain, to expedite the onboarding of new members.