Chinese Biometric Information Misused via Cryptocurrency Scams, Officials Claim

Following the recent announcement of China’s comprehensive prohibition on digital currency, a Chinese safety minister has alerted that foreign firms are employing questionable crypto methods to gather biometric data, including iris scans, labeling this activity as a risk to national safety and an infringement on personal privacy.

According to an article released on 6 August 2025 by the local media outlet Global Times, the Chinese ministry has emphasized rising apprehensions regarding biometric technology, referring to recent incidents where foreign intelligence services unlawfully obtained facial data from Chinese nationals for espionage.

While the ministry did not disclose any specific entities, the described techniques shared by authorities closely mirror those of Worldcoin, a crypto asset venture co-founded by OpenAI’s CEO Sam Altman.

China warns iris-scanning crypto projects pose national security threat. Read more on our article. https://t.co/3xQI6hrN7N

— Crypto token Headlines (@coinheadline) August 6, 2025

For those unfamiliar, World, formerly known as Worldcoin, provides users with crypto tokens in trading protocol for their iris scans. The founders initiated the startup with the aim of utilizing biometric methods to authenticate unique identities and enhance digital financial inclusion, particularly in underrepresented areas.

The ministry asserts that an unnamed foreign corporation used coin distribution to amass extensive iris data from global users. Once collected, this data was transmitted abroad.

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Chinese Officials Elaborate on Increasing Risks of Biometric Data Leaks

The report stated that biometric identification technologies, praised for their rapidity and precision, have seen widespread adoption in recent years. Additionally, officials pointed out that while these technologies offer convenience, they are capable of storing and processing facial features, fingerprints, irises, and sometimes body movements. As the utilization of this technology grows, the potential for data breaches has correspondingly escalated.

To illustrate their concerns, Chinese officials recounted instances where foreign agents misused biometric data to gain access to confidential information or infiltrate secure sites. They cited a fingerprint-based payment system associated with a corporate database that experienced frequent safety breaches due to inadequate cybersecurity measures, leading to substantial data exposure.

Moreover, the ministry highlighted that iris patterns are particularly sensitive because of their permanence and price ceiling to counterfeiting, making them optimal for authentication in secure environments.

However, their distinctive nature also renders them prime targets for cybercriminals.

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Authorities Urge Citizens to Vigilantly Monitor Their Data

As biometric technology continues to permeate various sectors, from financial services to immigration, China’s Ministry of Public Safety has issued a warning encouraging citizens to be more cautious regarding this issue.

In their advisory, the ministry has urged the public to be wary when providing biometric data, particularly for services requiring facial scans, fingerprints, or iris recognition.

Additionally, they stressed that individuals have the right to buyer interest clarity from data collectors on how they manage, process, and utilize personal data, encouraged thorough examination of privacy policies, and warned against signs of excessive data collection practices.

Importantly, no new regulatory frameworks have been established thus far concerning this topic.

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