China Accuses Foreign Crypto Project of Surveillance via Iris Scanning

6d ago•

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According to a new advisory, China crypto surveillance concerns center on a foreign crypto project that collects iris scans in exchange for tokens. China called this practice a risk to privacy and national security. It cited potential threats from biometric data transfer overseas. Many observers believe the warning targets the World, a project where people scan their eyes using an Orb device.

Who is Involved and What Took Place

China’s Ministry of State Security said that a firm offered cryptocurrency to users after scanning their irises and then sent that data out of the country. It warned that this behavior could harm users and national interests. The advisory did not name the company, but the description matches World (formerly Worldcoin).

World launched in 2023 to verify real humans via iris scans. It rewards users with WLD tokens in return. Critics call it China crypto surveillance in action, since iris data is sensitive and permanently identifiable.

Worldcoin regulation — When Crypto Meets the Eye of Surveillance

Why China and Others Responded

Privacy and National Risk

Iris data is permanent. If someone leaks it, the damage stays forever. Chinese officials warned that China crypto surveillance threats include espionage and identity theft. Public intelligence agencies could misuse this biometric data.

European Data Protection Rulings

Spain and Germany applied the GDPR rules strictly. Spain’s data authority ordered the deletion of iris data collected from about 400,000 people. Germany’s BayLDA demanded that the World erase all stored iris data by early 2025 and improve consent processes.

Asia and Africa Shut Downs

Kenya’s High Court ordered the deletion of data and paused new registrations until a data protection assessment is completed. The ruling also banned crypto incentives tied to biometric scanning. Indonesia suspended operations in May 2025 due to missing electronic system permits and user consent concerns. Brazil banned the World entirely in January 2025 over consent violations.

Global Actions at a Glance

Country	Action Taken	Date
Spain	Ordered deletion of iris records	March 2024
Germany	GDPR order to erase biometric data	Jan 2025
Kenya	Court halted data collection, deleted iris	May 2025
Indonesia	Suspended operations over compliance issues	May 2025
Brazil	Full ban on the project	Jan 2025

China Crypto Surveillance — Global Crackdown on Iris-for-Crypto Projects

Company Response and Project Design

World (formerly Worldcoin) says it deletes raw iris images immediately after scanning. Only an encrypted identifier remains. The company open-sourced its code and conducted third-party audits. World also allows users to control their own data storage or delete it later.

At a recent keynote, co-founder Sam Altman said the Orb never stores biometric images on a central server. He shared that World plans to use its system for digital identity, UBI delivery, and fraud prevention in AI-driven platforms. At the same event, attendees received WLD tokens instantly after scanning.

Still, critics warn that even encrypted codes can trace back to individuals if metadata or operator data leaks. They say consent systems may be weak in poorer regions where users accept crypto for scans.

Larger Context: Why China Issues This Warning Now

China already bans crypto mining, trading, and holding. On May 30, 2025, it extended the ban to private ownership of Bitcoin, Ethereum, and altcoins. The country pushes its digital yuan instead.

With rising distrust of crypto globally, China’s warning over biometric tools adds another dimension. It seeks to tighten oversight and promote caution before identity-linked crypto projects spread further.

Quotes That Explain the Risk

Privacy activists highlight this concern:

“Worldcoin’s biometric ID system raises centralization risks and data leaks”.

German data regulator stated,

“We enforce European fundamental rights standards … All iris data must be erasable upon withdrawal of consent”.

These statements show regulators view biometric crypto systems as more than tech; they see them as legal and ethical flashpoints.

What Users Should Know About China Crypto Surveillance

China’s crypto surveillance concerns show how biometric data tied to crypto may breach privacy. Users should ask:

Who collects iris scans?
Who keeps the data, and where?
Can users delete their data anytime?
Was consent informed and verifiable?

Users must only join projects that explain these clearly and follow the laws in their region.

Conclusion

Based on the latest research, China crypto surveillance worries reflect a global shift: people no longer accept biometric data collection for crypto without strict oversight. Project operators like World face bans and strict orders around the World. Users must demand transparency, control, and compliance. Biometric identity may play a role in the future but only if it respects individual rights and local laws.

To get more detailed insights into the World of cryptocurrencies, check out our latest articles.

Summary

China has raised concerns about crypto projects collecting iris scans in exchange for tokens, warning that this could risk national security and user privacy. Though unnamed, the project resembles Worldcoin, which uses biometric data for digital ID. Several countries, including Spain and Hong Kong, have halted or restricted such operations. While the company claims to protect user data, experts and regulators remain cautious. The issue highlights the need for transparency, consent, and strong safeguards in crypto-linked identity systems.