Hong Kong's privacy watchdog has accused Worldcoin of violating data laws, leading to the requirement for the Worldcoin Foundation to halt all activities in the region. The controversy surrounding Worldcoin, a startup utilizing iris biometric technology co-founded by Sam Altman, has raised serious concerns about its data collection practices in Hong Kong, as highlighted by the Privacy Commissioner's recent findings.

The Privacy Commissioner's report, released on May 22, revealed that Worldcoin's handling of biometric data did not comply with Hong Kong's personal data (privacy) ordinance, which aims to safeguard residents from intrusive data practices. Ada Chung Lai-ling, the Privacy Commissioner, emphasized that the collection of face and iris images by Worldcoin was excessive and unnecessary, breaching local regulations and raising red flags about the project's operations in the region.

The investigation uncovered various issues with Worldcoin's data collection methods, including a lack of transparency and fairness. One major concern was the absence of privacy notices and consent forms in Chinese, making it challenging for participants to fully grasp the terms of engagement. Additionally, the extended retention period of personal data, up to 10 years, was deemed excessive and not in line with privacy standards, according to Ada Chung.

Moreover, Worldcoin failed to inform participants adequately about their data rights, such as access and correction, violating privacy laws and further complicating the transparency of their data practices. In response to these findings, the Privacy Commissioner issued an enforcement notice instructing Worldcoin to cease all iris and face image scanning operations in Hong Kong, affecting over 8,300 individuals who had their biometric data scanned for WLD tokens.

Worldcoin, established in 2019 with a vision to develop a global digital identity platform through iris-scanning technology, has faced significant scrutiny following the enforcement notice. The project, backed by substantial funding from prominent investors, now confronts the challenge of addressing the privacy concerns raised by Hong Kong's regulatory authorities. As Worldcoin navigates these legal and ethical obstacles, the future of its operations in Hong Kong and beyond remains uncertain, emphasizing the importance of compliance with data laws and ethical data handling practices in the digital age.