- Hong Kong’s data privacy watchdog, the PCPD, has ordered Worldcoin (WLD) to cease operations in the region.
- The decision follows an investigation that found Worldcoin’s iris scanning and data collection practices violated the Personal Data (Privacy) Ordinance.
The Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong has concluded a probe into the cryptocurrency project Worldcoin (WLD), determining its operations violated the city’s privacy laws.
On May 22nd, 2024, Privacy Commissioner Chung Liling issued an enforcement notice to the Worldcoin Foundation, mandating the immediate halt of all activities in Hong Kong that involve collecting iris and facial scans through their iris scanning devices.
The PCPD launched the investigation in January 2024 to assess if Worldcoin’s identity verification process posed a significant risk to citizens’ data privacy and breached the Personal Data (Privacy) Ordinance. This investigation came after ten covert visits conducted by the PCPD across six Worldcoin project locations between December 2023 and January 2024.
The PCPD concluded that collecting facial images was unnecessary for verifying participant identity. Since iris scanning device operators could perform this verification in person, collecting facial scans was deemed an excessive step.
Furthermore, the PCPD found that Worldcoin failed to provide sufficient information, hindering informed consent. The investigation revealed the Worldcoin Privacy Notice lacked a Chinese translation, preventing non-English speakers from comprehending the project’s policies and terms. The PCPD stated that “iris scanning device operators… did not offer any explanation or confirm the participants’ understanding… They also did not inform the participants of the potential risks associated with disclosing biometric data.”
Given these circumstances, the PCPD deemed the collection of facial and iris scans unfair and unlawful, violating Data Protection Principle (DPP) 1(2).
The investigation also highlighted Worldcoin’s retention of sensitive biometric data, including facial and iris scans, for up to ten years solely for AI model training as unjustified.
Worldcoin confirmed that over 8,300 individuals had undergone facial and iris scans for verification purposes during its Hong Kong operation.
Worldcoin’s launch in 2021 garnered over two million sign-ups before its official launch in July 2023. However, the project has faced scrutiny from regulators worldwide due to privacy concerns. This has resulted in service suspensions in Kenya and a halt to iris scans in India.