Hong Kong regulator asks Sam Altman’s Worldcoin to halt operations, here’s why

Worldcoin in Hong Kong: On Wednesday, a Hong Kong regulator issued an enforcement notice to the Worldcoin Foundation, directing the cryptocurrency project to cease all operations within the country due to privacy and personal data risks.

The Office of the Privacy Commissioner for Personal Data (PCPD) mandated that Worldcoin halt the scanning and collection of iris and facial images from the public using its devices. The regulator described the data collection practices as "unnecessary and excessive."

Worldcoin encourages individuals to have their irises scanned by its "orb" devices in exchange for a digital ID and free cryptocurrency. According to its website, over 5 million people in more than 160 countries have participated in the iris scanning process. However, the project has faced criticism for its collection, storage, and use of personal data.

In response to the enforcement notice, the Worldcoin Foundation expressed disappointment with the Hong Kong regulatory authorities' stance.

We follow all privacy laws: Worldcoin foundation

"Worldcoin operates lawfully and is designed to be fully compliant with all laws and regulations governing data collection and use, including the Personal Data (Privacy) Ordinance of Hong Kong, among many other similar statutes across other markets," the foundation stated in an emailed response.

Worldcoin, co-founded by OpenAI CEO Sam Altman, aims to create a global identity and financial network similar to India's Aadhaar biometric ID system. The project’s website outlines ambitious use cases, including distinguishing humans from artificial intelligence bots.

Regulators worldwide, especially in European countries, have raised concerns about the potential misuse of the Worldcoin database.

(With Reuters inputs)