Worldcoin Foundation states that these measures ensure that user data is treated at the highest levels of security and privacy. However, Worldcoin’s claims have not resonated in Hong Kong recently. Hong Kong regulators decided to ban Worldcoin’s operations. Worldcoin Foundation, on the other hand, expressed their disappointment in this decision and stated that they work in full compliance with all laws and regulations, especially Hong Kong’s personal data (privacy) regulation.

A spokesperson for the Worldcoin Foundation stated that the company “operates legally and is designed to be fully compliant with all laws and regulations governing data collection and use.” The spokesperson also emphasized that the laws they comply with include similar regulations in many other markets, such as Hong Kong’s Personal Data (Privacy) Regulation.

So what happened in Hong Kong? The territory’s privacy regulator ruled that Worldcoin’s method of recording people using iris-scanning technology broke local privacy laws. He accused the San Francisco-based company of posing a privacy risk because of the way it handles biometric data. Privacy Commissioner Ada Chung Lai-ling said the facial and iris images collected by Worldcoin were “unnecessary and excessive” and violated local rules.

The Office of the Privacy Commissioner for Personal Data (PCPD) also found that Worldcoin did not adequately inform participants about their data access and rectification rights. This was considered another violation of privacy laws. As a result, the Privacy Commissioner issued an enforcement notice instructing Worldcoin to “cease the scanning and collection of iris and facial images of members of the public using iris scanning devices within the Worldcoin project.”

Founded in 2019, Worldcoin aims to create a digital identity platform that will be valid globally. This platform uses iris scanning technology to authenticate users. The project raised $115 million in May 2023 in a Series C funding round led by Blockchain Capital, with participation from Andreessen Horowitz (a16z), Bain Capital Crypto and Distributed Global.

The ban in Hong Kong is a sign that Worldcoin’s iris scanning method is fueling debate over privacy. While Worldcoin argues that privacy is important for the transition to a safe artificial intelligence era, regulators express concerns about the collection and use of biometric data. This conflict may affect how identity verification methods will be shaped in the age of artificial intelligence in the coming period.