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China warns Worldcoin-style iris data collection for crypto poses national security threat

The Block

2025-08-06 15:41:25

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China's Ministry of State Security has warned that a foreign company's practice of collecting iris data from users in exchange for cryptocurrency presents a national security threat.

In a post published Wednesday on its official WeChat account, the Chinese authority stated that documented cases reveal a foreign company has exploited the lure of cryptocurrency token distributions to systematically scan and collect users' iris data on a global scale. The authority warned that the company's subsequent transfer of these data sources "poses threats to both individual privacy and national security."

While the Chinese authority did not explicitly name the project in its post, the description appears to be a reference to World, formerly known as Worldcoin.

Worldcoin has previously faced regulatory scrutiny in multiple jurisdictions over data privacy and protection concerns. In May, Indonesia suspended the operating permit of World following public reports of suspicious activity involving Worldcoin and World ID.

"World has voluntarily paused its proof of human verification services in Indonesia and is seeking clarification on the terms of the relevant licenses and permits," a spokesperson of Tools for Humanity, the main developer of World, said at the time.

China has repeatedly warned of risks associated with crypto. Last month, the financial watchdog in Shenzhen issued a warning against fraudulent schemes masquerading as investments in stablecoins and other cryptocurrency assets.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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