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

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.