China Warns Worldcoin Iris Scans Pose Security Risks
China’s Ministry of State Security has warned that a foreign crypto project collecting users’ iris scans in exchange for tokens poses national security and data privacy risks. The advisory, while unnamed, aligns with Worldcoin’s model: using Orb devices to scan irises and issue WLD tokens. Since rebranding to World, the project claims data protection via zero-knowledge proofs but has faced regulatory actions in Hong Kong, South Korea, Germany, Kenya and Taiwan, where iris data is deemed sensitive. WLD now trades around $0.94, down 45% over the past year and about 90% from its all-time high. Continued scrutiny from China may increase Worldcoin’s compliance costs, slow adoption and heighten volatility for the WLD token and similar biometric-crypto projects.
Bearish
The MSS warning signals heightened regulatory scrutiny of Worldcoin’s iris-scanning model, likely increasing compliance costs and undermining user adoption. In the short term, traders may sell WLD tokens amid uncertainty, driving price pressure. Over the long term, persistent privacy and national security concerns could limit Worldcoin’s market reach and investor confidence, sustaining downside risk. Past regulatory exits and significant YTD price declines reinforce a bearish outlook for WLD.