Hong Kong’s privacy watchdog has ordered the halt of all activities by OpenAI founder Sam Altman’s Worldcoin project in the region. The project was found to be collecting iris and facial images from the public using iris-scanning devices, in violation of data privacy laws. The privacy office conducted multiple visits to Worldcoin’s locations and eventually raided them to gather evidence, finding that over 8,000 people had their scans taken during its operation.
The Hong Kong privacy commissioner, Ada Chung, ruled that Worldcoin’s operations violated data protection laws in the territory. The office found that the collection of facial and iris images was unnecessary and excessive. Worldcoin also failed to provide essential documents in Chinese, the primary language in Hong Kong, including the privacy notice and biometric data consent form. They did not inform participants about the potential risks of surrendering biometric data and neglected to address inquiries raised by participants.
Despite claims that Worldcoin prioritizes compliance with laws regarding personal information, the company’s operations in Hong Kong were found to be in violation of data privacy laws. The project had a popular launch in July 2023, attracting a significant user base in the region. Within six months, its crypto wallet app, World App, had over a million active users and 4 million downloads.
The use of iris-scanning devices and facial recognition to collect biometric data for the purpose of offering free cryptocurrency raised privacy concerns in Hong Kong. The privacy watchdog’s investigation found that Worldcoin’s data collection practices were unfair and did not adequately inform participants of the risks involved. By failing to provide essential documents in Chinese and address inquiries raised by participants, the project violated data protection laws in the region.
The privacy commissioner’s ruling against Worldcoin’s operations in Hong Kong highlights the importance of adhering to data privacy laws and regulations when collecting personal information, especially when using biometric data. The project’s popularity and rapid growth in the region through its crypto wallet app, World App, are overshadowed by the privacy concerns raised by the excessive and unnecessary collection of facial and iris images from participants.
Ultimately, Worldcoin’s practices in Hong Kong have come under scrutiny as the privacy watchdog instructs the project to cease all activities in the region. The investigation revealed violations of data protection laws, including excessive data collection and unfair practices in obtaining biometric data from participants. Compliance with data privacy laws is essential for any project collecting personal information, especially biometric data, to ensure the protection and privacy of individuals.
