Sam Altman’s crypto project halted in HK over privacy concerns

Photo credit: Worldcoin

Worldcoin, Sam Altman’s crypto project, has faced hurdles in Hong Kong due to its data collection process, Agence France-Presse reported.

The venture aims to create a secure digital identity using each user’s unique iris patterns. Using an orb-like device, Worldcoin scans users’ eyes to create a World ID that they can use to sign in to their mobile app and crypto platform accounts, among others.

However, this apparently breached privacy laws in the territory, with Hong Kong’s Privacy Commissioner for Personal Data (PCPD) calling the collection of facial and iris scans unnecessary and extreme.

Consequently, Hong Kong has issued an enforcement notice to stop such activities in the market.

Responding to this, Worldcoin told Tech in Asia that it was “disappointed” by Hong Kong’s measures and stressed that it “operates lawfully and is designed to be fully compliant with all laws and regulations governing data collection and use.”

Hong Kong has left Worldcoin’s efforts in data minimizing, giving users control over data, and secure multi-party computing, among other areas, in its evaluation, the company added.

Worldcoin previously encountered regulatory issues in Spain, Portugal, and Kenya due to similar privacy issues. The company has maintained, however, that the data is encrypted and safe.

The PCPD, however, questioned Worldcoin’s transparency. It criticized the project’s plan to store collected data for up to 10 years – a duration PCPD considered “not justified.”

Should Worldcoin ignore the enforcement notice, it could lead to a fine of up to roughly US$6,400 and two-year imprisonment for data collection regulation violations.

Despite the data collection disputes, Worldcoin has managed to attract over five million users globally, including over 8,000 from Hong Kong. So far, more than 137 million of its cryptocurrency tokens have been claimed globally.

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