Hong Kong regulator orders Worldcoin to stop collecting citizens’ data

What’s new? Hong Kong’s Office of the Privacy Commissioner for Personal Data has completed its investigation into the Worldcoin project, which began in January of this year. The project allows new users to access its blockchain ecosystem after undergoing a retinal scan to verify their identity. Following the investigation, the regulator ruled that Worldcoin violates local laws and must stop collecting citizens’ confidential data.

Material by Sing Tao Daily

What else is known? During the investigation, the regulator examined the scope and purpose of collecting citizens’ biometric data, the period of storage and security measures to protect it. Officials visited local Worldcoin offices and requested documents on how this data is stored and to whom it may be disclosed and shared.

They concluded that the project violated the Privacy Act, which governs the collection and storage of personal data. The regulator found the collection of retina scans to be excessive in itself. It also noted that the project did not provide new users with an agreement on the use of their data in Chinese, and generally failed to inform them of the purpose of the collection and the risks involved.

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Officials also found that Worldcoin intends to store the collected data for 10 years and use it to train artificial intelligence in identity verification procedures. The regulator believes that the project should not store citizens’ data for such a long period of time.

Finally, the directorate concluded that participants are restricted in their right to access their data, including deletion. Based on these findings, the regulator ordered the project to stop operating in Hong Kong.

A total of 8302 people were authenticated by Worldcoin in Hong Kong.

Worldcoin collects data through offices in several countries around the world using Orb devices. Users who pass the scan receive a digital World ID and WLD native tokens as a gift.

The project’s approach to the identification procedure has previously caught the attention of regulators in other countries, including the UK, Germany, and France. Late last year, Worldcoin stopped offering the verification service in India, France, and Brazil.

Authorities in Kenya, Spain, and Portugal have also ordered Worldcoin to cease operations following investigations.

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At the time of writing, WLD is ranked 91st in the overall ranking of cryptocurrencies by market capitalization with a figure of over $1,089 billion and is trading at $5,07, having lost 1,2% over the day. The weekly growth at the same time amounted to 5,9%, and the asset has added 40% since the beginning of the year.