Hong Kong authorities investigating Worldcoin over data privacy concerns Hong Kong authorities investigating Worldcoin over data privacy concerns
According to the Hong Kong Office of the Privacy Commissioner for Personal Data, there are concerns that Worldcoin is in "contravention" of regulatory requirements related to data collection and storage.
2 min read
Updated: Mar. 6, 2024 at 3:27 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong has initiated an investigation into Worldcoin over data privacy concerns related to its collection of biometric data, according to a Jan. 31 press release.
The PCPD said it executed court warrants to enter six Worldcoin premises on Jan. 31 in Yau Ma Tei, Kwun Tong, Wan Chai, Cyperport, Central, and Causeway Bay.
Hong Kong premises entered by PCPD.
According to the PCPD, the investigation focuses on the potential misuse of personal data, particularly the biometric data processed by Worldcoin in exchange for cryptocurrency tokens. The regulator said there are significant risks in collecting such sensitive data, and there are concerns that Worldcoin is in “contravention” of regulatory requirements related to data collection and storage.
Worldcoin Foundation clarified that the Orbs used to scan individuals “capture a high-resolution snapshot of the iris and converts it into an iris code, which is a numeric code proving the individual is a unique human.” Worldcoin affirms no data is stored unless a user requests it, and thus, “upon creation of the iris code, the images are completely deleted by default.”
The PCPD’s action aims to determine whether Worldcoin data collection practices comply with the Personal Data (Privacy) Ordinance (PDPO). The operation involved the collection of documents and information from Worldcoin to review its data collection and processing methods.
Worldcoin Foundation issued a statement shared with CryptoSlate stating.
“Worldcoin was established to help create access and participation in the global digital economy while preserving privacy. Worldcoin does not seek to know who a person is, just that they are human and unique. As such, any information used to verify unique humanness is promptly deleted by default.”
Meanwhile, the watchdog has advised the public to consider the necessity, purpose, and retention period of biometric data collection before participating in such activities. The regulator emphasized the sensitivity of biometric data, given its unique and unalterable nature.
The PDPO mandates that organizations collect personal data for lawful purposes and secure the data against unauthorized or accidental access and use. It also restricts using personal data for new purposes without explicit consent.
The PCPD also requested that the public submit any complaints and information regarding Worldcoin’s data practices.
Worldcoin’s regulatory woes
The Worldcoin project is undergoing similar investigations in several countries due to privacy concerns over collecting biometric data, notably iris scans, for digital identity verification and cryptocurrency distribution.
The Bavarian State Office for Data Protection Supervision in Germany initiated its investigation in 2022, driven by concerns about the scale of sensitive biometric data processing. The probe focuses on the legality of Worldcoin’s practices under the EU’s strict data protection regulations, particularly scrutinizing issues of user consent and the clarity of information provided to users about their data usage.
Similarly, the Argentine Agency for Access to Public Information (AAIP) launched an investigation into the project after a surge in local interest. The AAIP is examining Worldcoin’s adherence to local data protection laws, specifically focusing on how the company safeguards the privacy of its users in Argentina. This includes reviewing the security measures Worldcoin employs to protect the collected biometric data.
Meanwhile, the Kenyan government has suspended Worldcoin’s operations in the country following an investigation deemed its activities to be “espionage.”The project has been working with the authorities to resolve the situation.
Updated Feb. 1, 2024, 1 p.m.: Added comments from Worldcoin Foundation and clarified subheading.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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Worldcoin
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Worldcoin’s mission is to build the world’s largest identity and financial network to serve as a public utility, giving ownership to everyone.
Worldcoin
Worldcoin, co-founded by Alex Blania and OpenAI CEO Sam Altman, seeks to provide its users with a verified digital identity, as well as a cryptocurrency token (WLD) and a crypto wallet software.
