China Caution Against Exchanging Biometric Info for Crypto: Security Concer

Published Date : 8/6/2025 

Chinese authorities have issued a warning against sharing biometric information, such as iris data, with foreign companies in exchange for cryptocurrency. The alert is primarily directed at the digital ID project, World, which allows users to claim digital coins after scanning their irises. 

Chinese authorities are warning about the dangers of sharing biometric information, such as iris data, with foreign companies in exchange for cryptocurrency, seemingly referring to the digital ID project World. The Sam Altman-founded company allows users to claim some of its WLD digital coins after scanning their irises.

Iris data are often targeted by criminals and can be collected and stolen under various pretexts, according to a social media post by the Chinese Ministry of State Security on Wednesday. Biometric data leaks not only affect personal privacy and security but also allow foreign intelligence agencies to obtain information on targets and infiltrate their workplaces, it adds.

“Public cases are showing that a certain overseas company uses the issuance of cryptocurrency tokens as a gimmick to scan and collect user iris information worldwide, and transfer the data source, posing a threat to personal information security and even national security,” the Ministry says on its official WeChat channel.

World, including its crypto wallet World App, does not have an official presence in China. The country is well-known for its negative stance towards cryptocurrency: In 2017, its government banned domestic cryptocurrency exchanges and Initial Coin Offerings (ICOs), citing financial risks and fraud prevention.

China has also been cracking down on biometric data collection in recent years, driven by public pressure and frequent news of data leaks. This includes issuing new regulations for commercial uses of facial recognition.

Last year, China’s Special Administrative Region of Hong Kong, which is governed by separate laws, ordered World to cease operations after its privacy office concluded that the company runs afoul of local data privacy regulations. The Hong Kong Office of the Privacy Commissioner for Personal Data also staged multiple raids on World offices across the city.

World, which recently reached 14 million verified users, has been facing regulatory scrutiny in other markets across the world, including Germany, Indonesia, and Kenya. 

Frequently Asked Questions (FAQS): 

Q: What is the main concern of Chinese authorities regarding biometric data?

A: The main concern is that sharing biometric data, such as iris data, with foreign companies in exchange for cryptocurrency poses significant risks to personal privacy and national security.

Q: What specific project is being targeted by the Chinese authorities?

A: The specific project being targeted is World, a digital ID project that allows users to claim digital coins (WLD) after scanning their irises.

Q: Why has China banned domestic cryptocurrency exchanges and ICOs?

A: China banned domestic cryptocurrency exchanges and ICOs in 2017 to mitigate financial risks and prevent fraud.

Q: What actions has the Hong Kong Office of the Privacy Commissioner for Personal Data taken against World?

A: The Hong Kong Office of the Privacy Commissioner for Personal Data has ordered World to cease operations and conducted multiple raids on World offices across the city due to violations of local data privacy regulations.

Q: How many verified users does World have, and where is it facing regulatory scrutiny?

A: World has recently reached 14 million verified users and is facing regulatory scrutiny in several markets, including Germany, Indonesia, and Kenya. 

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