Investigation and Findings
Hong Kong’s Privacy Commissioner investigated Worldcoin’s operations and found they violated data protection principles. The project collected participants’ iris scans without proper consent and transparency. The privacy notice and consent form were not available in Chinese, and operators failed to explain the policies.
Collection of Biometric Data
Worldcoin used iris scans to verify identities and distribute cryptocurrency. The Privacy Commissioner found this collection of biometric data to be excessive and unfair. Participants were not informed of the risks involved in disclosing their biometric data.
Lack of Transparency
The project failed to provide sufficient transparency to Chinese-language users. They could not fully understand and consent to the data collection policies.
Cease of Operations
Based on these findings, the Privacy Commissioner ordered Worldcoin to immediately cease operations involving iris scanning in Hong Kong. The project was also required to inform participants of their rights to access and correct their data.
Global Scrutiny
Worldcoin has faced regulatory challenges in other countries, including Germany, France, and Kenya.
New System
In response to these concerns, Worldcoin has developed a new open-source system to enhance data protection. It uses secure multi-party computation to distribute data and increase security. The system aims to address concerns about data storage, scale, and cost limitations.
