China’s Ministry of State Security (MSS) has warned that a foreign crypto company is collecting iris scan data under the guise of token distribution, raising serious concerns about personal and national security.
The MSS stressed that iris data, like other forms of biometric information, could be used for identity theft, fraud, and illegal surveillance once leaked.
Officials cited recent examples, including a foreign firm whose fingerprint payment system was compromised due to weak security controls. Hackers reportedly accessed sensitive user data by breaching the company’s internal systems.
According to the ministry, there is mounting evidence that foreign intelligence agencies have engaged in unauthorized collection of facial and biometric data. These actors allegedly falsify such data to access secure environments and conduct surveillance operations.
The MSS noted this represents a growing risk to China’s national security.
Considering this, the authorities stressed that Chinese law provides strict safeguards around biometric data, including facial and iris recognition technologies.
The MSS urged both citizens and organizations to comply with existing legal frameworks. It also encouraged the public to remain alert and report suspicious data collection activities.
The project scans users’ irises in return for WLD tokens, a practice already under investigation in multiple jurisdictions.
Authorities in those regions have raised red flags over data protection violations, non-compliance with privacy laws, and a lack of transparency.
