The Office of the Privacy Commissioner for Personal Data (PCPD) pointed out that Worldcoin’s practices violated Hong Kong’s data protection principles.
The highly controversial Worldcoin project is facing another challenge. Hong Kong’s privacy regulator, the Privacy Commissioner for Personal Data (PCPD), has issued a directive to the Worldcoin Foundation to cease all business activities in Hong Kong because its actions violated local privacy protection laws.
The PCPD released a statement this week revealing that Worldcoin collected facial and iris biometric data from at least 8,302 individuals during its operations in Hong Kong.
After conducting 10 covert inspections at six Worldcoin locations in December 2023 and January 2024, the agency determined that such large-scale collection of biometric information was "unnecessary and excessive." It also added that the actions violated data processing principles under Hong Kong's privacy laws.
According to the findings of the Privacy Commissioner for Personal Data (PCPD) of Hong Kong, the Worldcoin project determined that it was "unnecessary and excessive" for Worldcoin to collect both iris scans and facial images after conducting 10 undercover visits to six operating locations between December 2023 and January 2024. The PCPD believed that iris scans alone were sufficient to verify the identity of participants, so collecting facial images was an unnecessary step.
In addition, PCPD pointed out that Worldcoin failed to provide sufficient information, hindering people from making informed decisions and genuine consent, and Worldcoin's privacy statement did not have a Chinese version, resulting in non-English participants being unable to understand the project's policies, practices, terms and conditions. Therefore, PCPD believes that Worldcoin's practices violate the data protection principles under Hong Kong's privacy laws. $WLD
The challenge of verifying human identity
Hong Kong’s Privacy Commissioner for Personal Data (PCPD) noted that Worldcoin will retain personal data for up to 10 years to train artificial intelligence models for the user verification process, a period it considers “excessively long.” The PCPD also said there are “less privacy-intrusive” alternative methods to prove human identity.
It’s worth noting that Hong Kong isn’t the only region to oppose Worldcoin and its controversial iris-scanning sphere. In fact, the project led by Sam Altman has run into difficulties in multiple regions for its digital ID collection. In March, South Korea launched an investigation after receiving complaints about the project’s collection of personal information. Similarly, Spain and Portugal have instructed the project to stop collecting users’ biometric data.
Unlike privacy advocates who have repeatedly stressed that the Worldcoin project may infringe on personal privacy, Billy Luedtke, founder and CEO of Intuition, a startup in the decentralized identity field, gave a positive evaluation of the Worldcoin project. This shows that there are different opinions and attitudes in the industry on the use of Worldcoin and its iris scanning technology. Despite privacy concerns, some people recognize its innovative attempts and potential value in decentralized identity authentication.
Luedtke stressed the growing importance of verifying whether information comes from a human source in the context of rapid advances in AI, claiming that Worldcoin and other decentralized identity projects “are actively addressing this challenge, providing tools to help individuals assert their humanity in an online world where the complexity of distinguishing between human beings is increasing.”
In a statement to the media, the executive said:
“While concerns about data privacy remain valid, the usability of the internet has suffered due to the proliferation of non-human activity, trust deficits, and a fragmented identity landscape. Encouraging dialogue between government and industry, as well as innovation in privacy-preserving technologies like Personal Custody, offers hope for continued progress and innovation in this space.”
What does Hong Kong’s rejection of Worldcoin mean for cryptocurrencies?
Jerry Li, co-founder and CEO of Artela Network, interpreted Hong Kong’s suspension of Worldcoin operations as a sign that Hong Kong is taking a strict and proactive stance on cryptocurrency regulation, especially regarding issues involving data privacy and biometric data collection.
In an interview with the media, Li said that this strict approach is likely to set a precedent in the Asia-Pacific region, forcing other crypto projects to prioritize data privacy and comply with local regulations.
However, the executive said the move does not mean Hong Kong is hostile to cryptocurrencies.
“The suspension of Worldcoin’s operations does not necessarily mean that Hong Kong is unfriendly to cryptocurrencies. Although Hong Kong enforces strict data privacy regulations, it continues to support the cryptocurrency industry through clear regulations, government initiatives, sound financial infrastructure, and industry support.”
Conclusion:
The Worldcoin project has been accused of violating privacy laws in Hong Kong, sparking controversy involving biometric data collection. The Office of the Privacy Commissioner for Personal Data (PCPD) has asked it to cease operations in Hong Kong. This incident not only reflects the concern for data privacy protection, but also sets a potential regulatory benchmark for cryptocurrencies and biometric data collection in the Asia-Pacific region. The balance between privacy protection and innovative attempts is still under discussion in the industry, looking forward to the progress and development of the field of digital identity verification in the future.#香港 #Worldcoin #数据隐私 #监管机构
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