China Warns on Biometric Crypto Data Collection, WLD Falls
China’s Ministry of Public Security and State Security has formally warned that iris scanning and other biometric data collection by crypto projects, notably Worldcoin (WLD), pose privacy and national security risks. Authorities highlighted potential unauthorized data use, opaque storage practices and third-party sharing, urging users to report suspicious activities. Following the August 5 notice, WLD slumped 5%, while Bitcoin (BTC) dipped near $114,000, down about 7% from recent highs amid broader sell-offs and unverified rumors of a wider crypto ban. Traders should monitor regulatory developments around biometric crypto data collection, as further restrictions or bans could reshape sector practices and impact affected tokens.
Bearish
The formal warnings from China’s Ministry of Public Security and State Security increase regulatory uncertainty for biometric crypto projects like Worldcoin, reinforcing downward pressure on WLD. Market sell-offs and unverified ban rumors have similarly weighed on BTC, contributing to short-term volatility. In the near term, continued regulatory scrutiny of biometric data collection may keep both tokens under pressure; over the long run, stricter rules or bans could fundamentally alter sector practices and investor confidence.