Although the statement did not specifically name the organization involved, the description closely matches Worldcoin, a project developed by Tools for Humanity. Worldcoin has drawn global attention for its use of spherical “orb” devices that scan an individual’s iris to generate a unique digital identity, which is then tied to distributions of its cryptocurrency, WLD.
According to the MSS, the transfer of highly sensitive biometric data to foreign entities carries risks that extend far beyond its intended use. Such information could be misused in ways that compromise personal safety or even national security. The agency’s remarks add to a growing chorus of global concerns about how biometric data is handled, particularly within the cryptocurrency and decentralized finance sectors.
Worldcoin, launched in 2023, has already faced investigations and regulatory pushback in several countries. Concerns have largely centered around data protection practices and whether users fully understand and consent to the collection of their biometric information. In May, Indonesian regulators suspended the company’s permit, citing irregularities in its identity verification services. The project later announced a voluntary pause of its proof-of-personhood operations in Indonesia to clarify compliance requirements.
China has long maintained a restrictive approach toward cryptocurrencies, banning trading and initial coin offerings while warning against speculative risks. The MSS’s latest statement broadens this position, suggesting that data collection tied to crypto incentives is not only a consumer protection issue but also one of national security—particularly when foreign companies are involved in managing or storing sensitive personal data.
The issue reflects a wider international debate about balancing innovation with privacy. Proponents of biometric-based verification argue it offers a scalable way to distinguish real human users from bots in the Web3 ecosystem. Critics counter that once biometric information is collected, the possibility of data leaks, misuse, or unauthorized access remains, even with encryption.
Similar privacy concerns have emerged globally. In Europe, regulators are reviewing Worldcoin’s activities under the GDPR framework, while Kenya suspended new registrations in 2023. The MSS has now urged Chinese citizens to be cautious about offers that involve trading personal data for cryptocurrency, signaling that further oversight of such projects could follow.