China’s Ministry of State Security (MSS) has raised alarms over a foreign company’s (likely Worldcoin) collection of biometric data from users in exchange for cryptocurrency rewards, calling the practice a potential threat to both individual privacy and national security.
According to the MSS, the transfer of these sensitive data sources to external entities “poses risks not only to personal privacy but also to the country’s national security,” as biometric information can potentially be exploited beyond its stated purpose.
China’s warning adds to mounting global scrutiny over biometric data collection in the digital asset industry. Worldcoin, launched in 2023, has faced investigations and regulatory actions in multiple jurisdictions, primarily over concerns surrounding data protection and user consent.
This is not the first time China has voiced concerns about crypto-linked risks. The country has long maintained strict policies on digital asset trading and initial coin offerings (ICOs), emphasizing consumer protection and financial stability.
The MSS statement expands the scope of concern, highlighting how biometric data collection linked to crypto incentives can cross into national security territory, particularly if foreign entities manage or store sensitive information.
Critics, however, have cautioned that once biometric data is collected, the risk of misuse or unauthorized access remains high, even if encrypted or anonymized.
China’s public statement suggests that the country may increase oversight of foreign crypto projects operating within its jurisdiction or collecting data from Chinese nationals.
This aligns with global regulatory trends, where authorities are seeking to strike a balance between technological innovation and the protection of sensitive personal information.
The MSS has urged the public to exercise caution when approached with offers to exchange personal data for cryptocurrency rewards.
Featured image created with DALL-E, Chart from TradingView
