The Office of the Principal Commissioner for Personal Data (PCPD) has instructed Worldcoin to cease its operations amid an ongoing investigation initiated in early 2024. Notably, Worldcoin, a cryptocurrency venture, counts Sam Altman, the CEO of OpenAI, among its co-founders.

PCPD announced its scrutiny of Worldcoin's activities earlier in 2024, citing concerns over potential data breaches. This inquiry encompassed Worldcoin's facilities located in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay.

Ada Chung Lai-ling, the Privacy Commissioner for PCPD, highlighted Worldcoin's infringement of data protection principles (DPPs), particularly regarding data accessibility, rectification rights, and transparent data collection procedures.

Worldcoin's modus operandi involved iris scanning to verify users' identities and distribute its native cryptocurrency, WLD. However, the investigation revealed that participants were required to grant certain companies access to their facial and iris images through inadequate iris scanning procedures. It was reported that 8,302 individuals underwent this process in Hong Kong, but according to PCPD, the data collection was flawed. Additionally, discrepancies such as forms written in Chinese, which posed comprehension challenges for locals, and undisclosed risk factors further exacerbated the situation.

Consequently, PCPD ordered an immediate cessation of Worldcoin's operations. Similar regulatory actions have been taken against Worldcoin in other countries including Germany, France, and Kenya.

As part of remedial measures, Worldcoin has introduced secure multiparty computation (SMPC) to enhance data security by dispersing it across separate addresses during storage.