Key Takeaways:
- China’s Ministry of State Security warned that crypto projects using iris and facial recognition may pose national security risks due to biometric data misuse.
- The bulletin indirectly referenced Worldcoin, which collects iris data in exchange for crypto, raising concerns about irreversible privacy breaches.
- Vitalik Buterin proposed a decentralized, privacy-respecting digital ID model as an alternative to centralized systems.
China’s Ministry of State Security (MSS) has issued a warning about crypto projects that collect biometric data, particularly iris scans, citing risks to personal privacy and national security.
In a recent bulletin, the MSS expressed concern that some digital asset initiatives disguise themselves as token distribution platforms while secretly harvesting sensitive data.
⚠️ ALERT: China warns that Worldcoin-style iris scanning poses a national security threat.
— CryptosRus (@CryptosR_Us) August 6, 2025
The Ministry of State Security says foreign firms are collecting biometric data under the pretense of crypto giveaways — raising serious concerns about surveillance and sovereignty. 👁️ pic.twitter.com/NxVCJ0W5jf
One unnamed foreign company allegedly gathered global iris data and transferred it to a third party – posing potential threats.
Though not explicitly named, the description appears to match Worldcoin, which scans users’ irises in exchange for its World (WLD) token.
The MSS stressed that iris data, once compromised, is irreplaceable and highly sensitive, given its use in secure environments.
Facial recognition technologies were also flagged as risky, with concerns over misuse by foreign intelligence.
The agency urged the public to act with caution when sharing biometric data.
Separately, Ethereum co-founder Vitalik Buterin proposed a decentralized, privacy-conscious identity system called “pluralistic identity,” which uses multiple sources for verification.
He criticized centralized ID systems for threatening anonymity and called for more inclusive, privacy-preserving approaches in the digital identity space.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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