Worldcoin Ordered to Cease Operations in Hong Kong

Last Updated on May 22, 2024

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Close up Worldcoin logo. Source: Robert - stock.adobe.com

Key Takeaways:

  • Privacy Violation: Worldcoin violated Hong Kong’s data protection laws by collecting iris and facial images without proper consent.
  • Regulatory Action: The Office of the Privacy Commissioner for Personal Data (PCPD) demanded Worldcoin cease operations involving iris scanning in Hong Kong.
  • Consent Issues: The investigation revealed Worldcoin’s inadequate consent processes, including failure to provide privacy notices in Chinese and insufficient explanation of data use.

Hong Kong’s privacy regulator, the Office of the Privacy Commissioner for Personal Data (PCPD), concluded that the Worldcoin project violated local data protection laws by collecting iris and facial images without proper consent or necessary justification.

The Privacy Commissioner, Ada Chung Lai-ling, issued an enforcement notice demanding an immediate cessation of all project operations in Hong Kong that involve the use of iris scanning devices for public data collection.

The PCPD launched an investigation into Worldcoin in January 2024, prompted by concerns over the methods used for identity verification and the risks they posed to personal data privacy.

The investigation, which included 10 covert visits to six premises, revealed that the collection of face images was not essential for verifying the identity of participants, as the operators at these sites could verify individuals in person.

Furthermore, the investigation found significant failings in Worldcoin’s approach to obtaining consent.

The company did not provide adequate information, preventing participants from making informed decisions.

Specifically, privacy notices were not available in Chinese, which excluded non-English speaking participants from fully understanding the project’s terms and conditions.

Additionally, Worldcoin’s staff failed to sufficiently explain the privacy implications or address participants’ queries regarding the use of their biometric data.

The PCPD criticized the retention of sensitive biometric data, including face and iris images, for up to 10 years for AI model training as unjustified and disproportionate.

In total, 8,302 individuals in Hong Kong had their biometric data collected by Worldcoin.

Since its announcement in 2021 and official launch in July 2023, Worldcoin has registered over two million people globally but has also attracted regulatory attention worldwide, leading to operational suspensions in countries like Kenya and India due to similar privacy concerns.

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