Bitrabo Editorial
The Office of the Privacy Commissioner for Personal Data (PCPD) in Hong Kong has issued a directive to Worldcoin, a cryptocurrency project co-founded by Sam Altman of OpenAI, instructing them to cease their operations. This decision comes after an investigation initiated by the PCPD in January 2024.
Halting of Worldcoin Activities in Hong Kong
Earlier this year, the PCPD in Hong Kong announced an investigation into Worldcoin’s activities due to potential risks to personal data privacy. The Privacy Commission scrutinized six Worldcoin locations across various districts.
Privacy Commissioner Ada Chung Lai-ling discovered violations of Data Protection Principles (DPPs) by Worldcoin concerning collection, retention transparency, data access, and correction rights.
Worldcoin used iris scanning to verify participants’ identity and distribute its native cryptocurrency, WLD.
The investigation found that participants were compelled to allow organizations to collect their faces and iris images through scanning in what was deemed an excessive and unnecessary manner.
Among other findings, it was revealed that the project lacked Chinese translations of crucial documents and failed to provide adequate explanations to participants.
In response to these breaches, the PCPD demanded an immediate halt to Worldcoin’s operations involving the scanning and collection of iris and face images in Hong Kong.
Global Oversight and System Revamp
Worldcoin has been under scrutiny internationally, with countries like Germany, France, and Kenya raising regulatory concerns following its launch.
In light of these challenges, the Worldcoin Foundation has introduced a new open-source system to address some of the issues raised by regulators. This system enhances data protection measures to safeguard sensitive information more effectively.
Through secure multi-party computation (SMPC), Worldcoin has enhanced data security by dispersing information across multiple locations and has deleted iris codes obtained during user registration.
The new approach aims to mitigate concerns regarding data storage, scalability, cost constraints, and reduce the likelihood of security breaches.