China has banned Worldcoin, a cryptocurrency project co-founded by OpenAI's CEO Sam Altman, due to significant privacy concerns. The main issue revolves around the project's collection and processing of biometric data, specifically iris scans, which are used to verify identities. China's decision aligns with broader apprehensions regarding the potential misuse of personal data and the risks it poses to individual privacy​ .

The Chinese authorities are particularly worried about the extensive and sensitive nature of the biometric data being collected, which includes concerns about data security, the potential for identity theft, and the ability for users to withdraw consent. These issues are not unique to China; similar concerns have led to regulatory actions and investigations in other regions, such as Europe and the UK, where data protection laws are stringent​ .

Worldcoin has faced scrutiny for allegedly collecting data without sufficient transparency and not providing clear means for users to revoke their consent. This controversy has led to temporary bans and ongoing investigations by data protection agencies in various countries, highlighting the global challenges in balancing technological innovation with privacy rights​ (CoinMarketCap)​.