Hong Kong’s PCPD investigates Worldcoin over privacy concerns
On Wednesday, the Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong launched investigations at six premises controlled by Worldcoin, the biometric cryptocurrency project established by Sam Altman, the CEO of OpenAI.
Potential personal data privacy risks
In a statement, the Privacy Commissioner expressed serious concerns about potential risks to personal data privacy. The PCPD executed warrants as part of the inquiry into Worldcoin's identity verification project, particularly focusing on the use of iris-scanning orbs for identity verification.
The PCPD urged Hong Kong residents to consider the implications of Worldcoin's biometric data collection and emphasized the importance of evaluating the legitimacy of such data collection.
The Commission also advised individuals to inquire about the purpose of data collection, the intended use of the data, the classes of entities with access to the data, the retention period of biometric data and the safety measures implemented to protect sensitive information.
"The PCPD is concerned that the operation of Worldcoin in Hong Kong involves serious risks to personal data privacy, and believes that the collection and processing of sensitive personal data by the relevant organization may be in contravention of the requirements of the Personal Data (Privacy) Ordinance," stated the privacy watchdog.
The Commission highlighted that any personal data controlled by Worldcoin must be collected for a lawful purpose related to the project's function or activity, with the information collected from users' irises deemed sensitive according to regulatory guidelines.
Global scrutiny
Worldcoin, which commenced operations in 2021 and officially launched in July 2023, has faced regulatory scrutiny in various countries due to privacy concerns. As of December 2023, Worldcoin reported that over 5 million people had created accounts using their identities.
However, the project's approach to identity verification through iris scanning has triggered investigations and actions by regulators. Notably, the project suspended services in Kenya and halted iris scans in India in response to regulatory challenges.
The company’s activities in the French and Brazilian markets have been suspended. Last year the UK’s Information Commissioner’s Office said that it would make further enquiries into the company’s activities. Meanwhile, the German data watchdog has been investigating Worldcoin since 2022.
In an effort to clarify the efforts the company is making to achieve compliance across international jurisdictions where data privacy is concerned, Worldcoin recently published a blog post on the subject. Within it, the company states that it “is designed to be fully compliant with all laws and regulations governing data collection and data transfer."
Despite its ongoing regulatory challenges, Worldcoin CEO Alex Blania remains steadfast in advancing the project's mission, stating recently:
"We race toward billions of users as fast as we possibly can."
The project closed out 2023 by expanding into Singapore.
The privacy concerns surrounding Worldcoin underscore the growing importance of balancing technological innovation with robust data privacy regulations to ensure the protection of individuals' sensitive information.
