China Issues Warning on Biometric Data Risks from Crypto Companies
China's Ministry of State Security (MSS) issued a warning regarding cryptocurrency companies that collect biometric data, such as iris scans. The MSS highlighted potential privacy invasions and risks of foreign intelligence gathering, categorizing these practices as threats to national security.
Key Points
- MSS expressed concerns about advanced biometric technologies in crypto ventures.
- Technologies discussed include facial image, fingerprint, and eye pattern scanning.
- An unnamed foreign company reportedly collected iris scans in exchange for cryptocurrency.
- Chinese authorities caution against sharing sensitive biometric data with unknown platforms.
- The warning aligns with China’s strict regulations and bans on cryptocurrency activities.
Worldcoin Context
While not explicitly named, the warning aligns with Worldcoin, co-founded by Sam Altman, which requires iris scans for its WLD token. Although it operates in over 160 countries, China is excluded from this initiative.
Regulatory Framework
- China has established laws like the Data Security Law and Personal Information Protection Law to safeguard personal and biometric data.
- These regulations mandate compliance from individuals and organizations to protect privacy and national data security.
Global Perspective
Concerns about biometric data collection are not limited to China. South Korea fined Worldcoin's parent company $830,000 for violating data protection laws related to biometric information.
Security Incidents
A recent incident involved Chinese Bitcoin mining firm LuBian losing 127,426 BTC, valued at $3.5 billion, in a significant hack. This highlights the necessity for cautious approaches to emerging technologies and data security.