Worldcoin Operations Shutdown Order in Hong Kong
Crypto News- Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) has concluded its investigation into the Worldcoin project, determining that the company’s operations violated the Personal Data (Privacy) Ordinance (PDPO).
Enforcement Notice Issued
In a notice issued on May 22, Privacy Commissioner Ada Chung Lai-ling mandated Worldcoin to immediately cease all activities in Hong Kong that involve scanning and collecting iris and facial images from the public.
Launch of Investigation
The PCPD launched its investigation in January 2024 to assess whether Worldcoin’s identity verification practices posed significant risks to personal data privacy and breached PDPO regulations.
From December 2023 to January 2024, the PCPD conducted ten covert visits across six locations operating Worldcoin’s services.
Unnecessary Data Collection
The PCPD found that collecting facial images was unnecessary for verifying participants’ humanness, as in-person verification by iris scanning device operators sufficed, making the additional step of scanning or collecting facial images redundant.
Additionally, the PCPD highlighted Worldcoin’s failure to provide adequate information to participants, which hindered informed decision-making and genuine consent.
Language Barriers
The investigation also revealed that Worldcoin’s privacy notice was not available in Chinese, preventing non-English speaking participants from understanding the project’s policies, practices, terms, and conditions. According to the PCPD:
“[…] the iris scanning device operators at the operating locations did not offer any explanations or confirm the participants’ understanding of the documents. They also failed to inform participants of the potential risks associated with disclosing biometric data or address their queries.”
Given these circumstances, the PCPD deemed the collection of face and iris images as both unfair and unlawful, stating that these practices violated fundamental data protection principles. The PCPD emphasized that the act of collecting facial images was unnecessary for the primary purpose of verifying participants’ identity. Additionally, the methods employed did not ensure that participants were adequately informed or had given genuine consent, further compounding the issue.
Moreover, the PCPD found the retention policies for the collected biometric data to be particularly problematic. Worldcoin was storing sensitive biometric data, including face and iris images, for a period of up to ten years. This data was intended solely for the purpose of training AI models, a use that the PCPD ruled as unjustified given the significant privacy implications and risks involved. The decision highlighted that such prolonged retention of sensitive data, especially without clear necessity and proper participant understanding, posed serious concerns regarding personal data protection and privacy rights.
Worldcoin confirmed that 8,302 individuals had their faces and irises scanned during its operations in Hong Kong.
Background and Global Scrutiny
Launched in 2021, the Worldcoin project attracted over two million sign-ups before its official launch in July 2023. However, privacy concerns have drawn the attention of regulators in several countries, leading to service suspensions in Kenya and a pause on iris scans in India.
FAQ on Hong Kong’s Order to Halt Worldcoin Operations
What is Worldcoin, and what was its operation in Hong Kong?
Worldcoin is a project that aims to create a global digital currency and identity verification system. In Hong Kong, Worldcoin’s operation involved scanning and collecting iris and facial images of participants using iris scanning devices to verify their identity.
Why did Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) investigate Worldcoin?
The PCPD investigated Worldcoin to determine whether its identity verification methods posed serious risks to personal data privacy and violated the Personal Data (Privacy) Ordinance (PDPO). The investigation began in January 2024.
What were the specific privacy concerns highlighted by the PCPD?
The PCPD highlighted that collecting face images was unnecessary for identity verification, adequate information was not provided to participants, and the privacy notice was not available in Chinese. The collection of sensitive biometric data without proper consent was deemed unfair and unlawful.
How many individuals were affected by Worldcoin’s operations in Hong Kong?
Worldcoin confirmed that 8,302 individuals had their faces and irises scanned during its operations in Hong Kong.
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