Key Notes
- China believes that eye-scanning crypto projects could threaten national security.
- The country’s security agency disclosed that they invade users’ privacy.
- Although not listed, it is believed that China is speaking about a crypto project that asked users to submit their iris data for crypto.
China’s top security agency has issued a serious warning about cryptocurrency companies that collect biometric data, such as iris scans.
According to the Ministry of State Security (MSS), these projects may not only invade users’ privacy but could also be used for foreign intelligence gathering, making them a potential threat to national security.
Rising Concerns Over Biometric Data in Crypto Projects
In a public notice released on August 6, the MSS expressed growing concern over the rise of advanced biometric technologies being used in crypto-related ventures. These include tools that scan and store facial images, fingerprints, and eye patterns.
While such technologies are often promoted as innovative or secure, Chinese officials are urging the public to be cautious, especially when the technology is being used under the pretense of distributing cryptocurrency.
The agency referred to one unnamed foreign company that collected iris scans from users worldwide in exchange for cryptocurrency. The collected data was then reportedly transferred to unknown locations.
Chinese authorities say this kind of activity puts people’s personal information at serious risk and could even be exploited by foreign powers for surveillance or espionage.
Worldcoin and Global Biometric Data Risks
Although the company was not named directly, the details seem to be in line with the operations of Worldcoin
WLD
$0.93
24h volatility:
2.9%
Market cap:
$1.72 B
Vol. 24h:
$143.81 M
, a project co-founded by OpenAI CEO Sam Altman.
Worldcoin requires users to scan their irises in order to receive its digital currency, the WLD token. The project recently hit 15 million weekly transactions and claims to have reached people in over 160 countries. However, China is not one of them.
World Network reached an all time high of 15 million weekly transactions. The real human network is growing! pic.twitter.com/O8b0JDx131
— World (@worldcoin) July 30, 2025
The Chinese government’s alert is part of a plan to regulate and monitor emerging technologies that could impact national security.
Officials are urging citizens to be aware of how and where their biometric data is being used, and to avoid sharing sensitive personal information with unknown or untrusted platforms, especially those based outside of China.
This warning also reflects China’s wider stance on cryptocurrency, which has been tightly regulated and largely banned in recent years.
By discussing the dangers of biometric data misuse, the government is reinforcing its message that not all technological innovation is safe, especially when it involves sensitive personal information and international players.
China Launched New Data Privacy Laws
China has introduced comprehensive laws to protect personal and biometric data, including the Data Security Law, Cybersecurity Law, and Personal Information Protection Law.
These regulations establish clear boundaries for the collection and use of sensitive information such as facial and iris data. Both individuals and organizations are required to fully comply with these regulations to ensure the protection of personal privacy and national data security.
Concerns over the collection of sensitive biometric data, such as iris scans, are not unique to China. South Korea has also taken a firm stance on the issue.
In 2024, the country’s Personal Information Protection Commission (PIPC) imposed a fine of 1.1 billion Korean won (approximately $830,000) on Worldcoin and its parent company, Tools For Humanity (TFH).
The penalty was issued in response to violations of data protection laws, particularly regarding the mishandling and unauthorized sharing of individuals’ biometric information.
In more recent news, a Chinese Bitcoin mining company named LuBian was the victim of the largest crypto hack. In December 2020, the firm lost 127,426 BTC, worth about $3.5 billion at the time, to hackers.
Given the rise of scams and hacks in the crypto world, China’s cautious approach to emerging technologies and data security seems both prudent and necessary.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Rose is a crypto content writer with a strong background in finance and tech. She simplifies complex blockchain and cryptocurrency topics, offering insightful articles and market analysis to help readers navigate the evolving crypto landscape.
