China Warns Worldcoin Iris-Scan Data Threatens Security
China’s Ministry of State Security has issued a warning that Worldcoin’s iris-scan data collection poses significant privacy and security risks for users. The MSS highlighted on WeChat that Worldcoin, operated by Tools for Humanity, uses Orb devices to scan irises in exchange for WLD tokens, transferring unique biometric data overseas. The project has already faced regulatory halts in Indonesia and Kenya, and GDPR investigations in Europe. Traders should monitor potential regulatory measures from China, as heightened scrutiny could lead to trading restrictions and weigh on WLD market sentiment.
Bearish
China’s MSS warning highlights privacy and security concerns around Worldcoin’s iris-scan data, adding to existing regulatory challenges in Indonesia, the EU and Kenya. This increased scrutiny is likely to weigh on WLD’s market sentiment and trading activity in the short term as investors may reduce exposure to regulatory risks. In the long run, sustained compliance pressure and potential Chinese regulation could limit Worldcoin’s expansion, keeping downward pressure on price and volume.