The controversial Worldcoin project has encountered another obstacle. Hong Kong’s privacy regulator, the Office of the Privacy Commissioner for Personal Data (PCPD), has ordered the Worldcoin Foundation to stop all operations in the region, citing violations of local privacy regulations.

The PCPD announced this week that Worldcoin collected facial and iris biometric data from at least 8,302 individuals during its Hong Kong operations. Following 10 covert inspections at six Worldcoin locations in December 2023 and January 2024, the agency concluded that this extensive biometric data collection was “unnecessary and excessive,” violating Hong Kong’s data protection principles.

Verifying Humanness: A Dilemma

The PCPD noted that Worldcoin planned to retain personal data for up to 10 years to train AI models for user verification, a period deemed “too long.” The agency suggested there are “less privacy-intrusive” alternatives to verify humanness.

Hong Kong is not the only region raising concerns about Worldcoin’s iris-scanning practices. The project, led by Sam Altman, has faced challenges in multiple areas. In March, South Korea launched an investigation following complaints about the project’s data collection practices. Spain and Portugal have also instructed Worldcoin to cease collecting biometric data.

Contrary to privacy advocates who argue against Worldcoin’s approach to proof-of-personhood, Billy Luedtke, the Founder and CEO of decentralized identity startup Intuition, praised the project. Luedtke emphasized the importance of verifying human sources amidst the rapid advancement of AI, stating that Worldcoin and other decentralized identity projects are addressing this challenge by providing tools to help individuals assert their humanity online.

In a statement to CryptoPotato, Luedtke said, “While concerns around data privacy remain valid, the internet’s usability suffers due to an overflow of non-human activity, trust deficits, and fragmented identity landscapes. Encouraging dialogues between governments and industries, alongside innovations in privacy-preserving technologies like personal custody, offer hope for ongoing progress and innovation in this field.”

What Does Hong Kong’s Rejection of Worldcoin Mean For Crypto?

Jerry Li, Co-Founder and CEO of Artela Network, sees Hong Kong’s decision to halt Worldcoin’s operations as a sign of its strict and proactive stance on crypto regulation, especially regarding data privacy and biometric data collection. Li believes this strict approach could set a precedent in the APAC region, prompting other crypto projects to prioritize data privacy and compliance with local regulations.

However, Li noted that this move does not indicate hostility towards cryptocurrencies in Hong Kong. “Stopping Worldcoin’s operations doesn’t necessarily imply that Hong Kong is unfriendly towards cryptocurrencies. Although Hong Kong enforces strict data privacy regulations, it continues to support the crypto industry through clear regulations, government initiatives, robust financial infrastructure, and industry backing,” Li said in a statement to CryptoPotato.