Hong Kong’s Office of the Privacy Commissioner raided six Worldcoin locations for potential privacy risks. The Sam Altman-backed altcoin project “poses serious personal data privacy risks,” according to a notice published by the privacy watchdog. The investigation comes as Hong Kong increases scrutiny on privacy and data protection.
Worldcoin faces privacy breach allegations
The Office of the Privacy Commissioner (PCPD) in Hong Kong has stated that Worldcoin poses a major risk to the protection of personal data and may violate the Privacy Regulation. The investigation is based on a court request. According to the statement made by the authorities, the research took place in six locations. The main concern of the investigation revolves around Worldcoin’s iris verification. As Privacy Commissioner Chung Liling has noted, iris data is a subset of biometric data. In general, biometric information is considered sensitive personal data because it is distinct, unchangeable and unique.
Any person or organization that collects, stores, processes or uses personal data in Hong Kong is subject to applicable data protection standards as well as the rules of the Privacy Regulation. Altcoin Worldcoin previously faced regulatory scrutiny over the same iris biometrics. Due to this regulatory concern, Orb has stopped providing verification services in France, Brazil and India.
Altcoin price fell upon the development!
At the time of writing, WLD prices are down 10.4% in the last 24 hours. The altcoin is currently at $2.36. WLD’s total market value also decreased by 10.3% to $286 million. WLD’s trading volume dropped to $135 million.
Hong Kong steps up scrutiny on data privacy
According to local media reports, Hong Kong experienced a 50% increase in reported hacking and data breaches in the previous year. About a third of these cases involve public sector organisations. This increase in data breaches has led management to double down on inspections and controls. Reuters previously reported that Hong Kong would begin promoting new security measures. He also stated that the city “cannot afford to wait.”
According to a report published by the Hong Kong Productivity Council and Privacy Office last year, cyber attacks affected more than 73% of Hong Kong businesses in November 2022 and November 2023. Following increasing data breaches and privacy concerns, the country’s government is trying to solve this situation with strict laws. After this Worldcoin incident, the privacy watchdog has now urged people to be careful about sharing personal information. He also demanded to ban iris verifications.
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