China Warns of Biometric Threats to National Security via Crypto

China's Concerns Over Biometric Data and Crypto

China’s Ministry of State Security has raised alarms about the potential misuse of biometric data through cryptocurrency platforms. The ministry claims that a foreign company is using crypto as a cover to collect sensitive information, such as iris scans. This activity, according to the ministry, poses a threat to both individual privacy and national security.

Although the specific company was not named, the described tactics bear a striking resemblance to those used by World, a blockchain project co-founded by OpenAI’s Sam Altman. The ministry emphasized the growing risks associated with the widespread use of biometric recognition technology, despite its convenience and efficiency.

Risks of Biometric Data Misuse

The ministry highlighted several cases where biometric data has been misused. One example involved a foreign company that linked its fingerprint-based payment system to internal data systems, allowing hackers to access personal information repeatedly. Another case involved foreign intelligence services that obtained facial data from key targets, forged it, and used it to gain access to restricted information. These actions have even led to espionage operations within secure environments, posing serious threats to national security.

Additionally, the ministry mentioned a foreign company that collected iris data from users globally under the guise of distributing cryptocurrency tokens. While the details remain unclear, many believe this company is World, previously known as Worldcoin.

Recommendations for Users

In response to these concerns, the ministry urged citizens to be cautious when sharing biometric data, such as facial features, fingerprints, or iris scans, especially with tech platforms. It advised users to request clear explanations on how their data will be handled, review privacy policies, and remain vigilant against over-collection practices.

Scrutiny of World's Iris Scan Project

World, which offers crypto tokens in exchange for iris scans, claims that the data helps create secure digital identities and expand financial access in underserved areas. The company asserts that its World App is non-custodial, meaning users retain direct control over their World IDs and crypto. Once an iris code is created, the raw image is encrypted, sent to the user’s phone, and then deleted from its Orb. The iris data is also anonymized through multiparty computation, ensuring no personal information is stored.

Despite these assurances, the project has faced scrutiny in various countries. In 2023, the Kenyan government blocked new users from signing up while reviewing its privacy and data handling practices. The country’s interior ministry expressed concerns about the security of iris scan storage, the ethical implications of trading crypto for personal data, limited details on cybersecurity protections, and the risks of allowing a private firm to manage vast amounts of biometric information.

World attracted over 350,000 Kenyan users by offering free tokens worth approximately $54. Other countries, including Germany, France, India, and the UK, have also voiced concerns about the project, stating they would conduct further inquiries.

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