Beijing raises alarm over biometric data collection by foreign firms, hinting at Worldcoin's controversial model

TL;DR

• China's Ministry of State Security (MSS) has issued a warning against foreign crypto firms collecting biometric data.
• The warning points to iris-scanning projects offering crypto incentives, seemingly targeting Worldcoin.
• The MSS highlights risks related to national security, surveillance, and data leakage.
• China urges citizens to limit biometric data sharing and report suspicious collection activities.
• Similar concerns have already triggered investigations or bans in Germany, France, and Kenya.

China's Ministry of State Security (MSS) has issued a stern warning over the collection of biometric data by foreign entities, calling it a national security threat. The advisory, published on the agency's official WeChat account, criticizes companies that offer cryptocurrency incentives in exchange for iris scans-a move widely seen as a direct reference to Worldcoin, the digital ID and crypto project co-founded by OpenAI CEO Sam Altman.

Without naming specific companies, the MSS described cases where overseas firms collected iris data globally under the guise of crypto giveaways, and later transferred that data abroad. The ministry warned such actions could compromise both individual privacy and national security.

Biometric "Keys" Under Threat

The MSS emphasized the sensitive nature of biometric identifiers-such as facial features, fingerprints, and irises-likening them to biological "passwords" that cannot be changed if stolen.

The warning highlighted how these unique identifiers, once compromised, can be used for malicious purposes including identity theft, surveillance, and even espionage. The agency cited previous cases where stolen facial data was allegedly used by foreign intelligence services to deepfake identities, allowing agents to infiltrate secure areas. These examples aim to raise public awareness about the invisible risks of data harvesting in everyday technologies.

The Iris Issue: Why China Is Concerned

Iris recognition is among the most precise forms of biometric identification. Unlike passwords or fingerprints, iris patterns are extremely difficult to replicate and remain stable throughout a person's life. This makes iris data particularly valuable-and particularly dangerous if mishandled. The surface of the iris contains highly stable and intricate features like spots and striae that can uniquely identify an individual. This high-precision data, once leaked, can never be retracted, the MSS explained.

China's national security agency claims some foreign firms have used crypto giveaways to entice users into submitting this sensitive data, only to relocate the datasets abroad, potentially exposing them to misuse or unauthorized surveillance.

Worldcoin in the Spotlight (Again)

Although the MSS did not mention Worldcoin by name, the description matches its global data collection model closely. Launched with the promise of building a "universal digital identity", Worldcoin has distributed its native token to individuals in exchange for iris scans captured via a proprietary device called the "Orb."

The project says it aims to create a privacy-preserving identity network that could support global finance and online governance. But its approach has triggered multiple regulatory investigations, particularly over data consent, user awareness, and storage practices.

• In Kenya, authorities raided Worldcoin's local operations and later suspended the project pending data protection reviews.
• Germany's privacy watchdog opened an investigation into the legality of Worldcoin's biometric data collection in 2023.
• France's data protection agency, CNIL, also flagged concerns about transparency and user consent. 

Despite these controversies, Worldcoin has pressed on with global expansion, claiming over 5 million sign-ups as of mid-2025.

The Bigger Picture: Biometric Gold Rush

As AI and blockchain technologies converge, projects like Worldcoin are pushing the boundaries of what personal data means in a digital economy. For advocates, a decentralized identity layer could democratize access to financial and civic services.

But critics argue that even decentralized systems can centralize data collection power, especially when combined with high-stakes incentives like free money or digital rewards. The challenge now is balancing innovation with protection. And governments worldwide are waking up to the fact that data is no longer just a privacy issue-it's a matter of sovereignty.

Final Thoughts

China's warning about iris-scanning crypto projects reflects a growing intersection between privacy, geopolitics, and technology. While the message may be targeted and politically motivated, the underlying issue is universal: Who controls your data, and what can they do with it?

As the digital world moves toward biometrics as a default authentication layer, the risks multiply. Losing your password is one thing. Losing your biological identity? That's permanent. Governments, companies, and users alike now face a new reality: data is power-and with great power comes great vulnerability.