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Disclaimer: This story was originally published on May 22, 2024.

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The Hong Kong Office of the Privacy Commissioner for Personal Data (PCPD) has ordered Worldcoin, a cryptocurrency project focused on digital identity verification, to cease all operations within the region.

In a May 22 media statement, the PCPD, Hong Kong’s data privacy watchdog, concluded that Worldcoin’s practices violated the jurisdiction’s Personal Data (Privacy) Ordinance (PDPO) due to the unnecessary and excessive collection of facial and iris data.

This decision follows a series of regulatory actions and investigations targeting Worldcoin in various jurisdictions due to concerns about its data collection practices and potential privacy risks.

The investigation into the project’s Hong Kong operations began in January 2024, when the PCPD expressed concerns about the project’s potential risks to personal data privacy. The investigation involved ten covert visits to six Worldcoin operating locations between December 2023 and January 2024, revealing the collection of biometric data from at least 8,302 individuals.

The PCPD deemed the collection of facial images unnecessary for human verification, as iris scans were sufficient. Additionally, the lack of a Chinese-language privacy notice and inadequate explanations to participants raised concerns about informed consent.

Worldcoin’s privacy practices have faced scrutiny in several other countries. Kenya suspended all local activities associated with the project in August 2023 due to concerns about the collection of crucial identification information like iris scans. In India, Worldcoin “temporarily scaled back” its offline verification process using iris-scanning Orbs.

Additionally, Spain and Portugal have issued temporary bans on Worldcoin's operations, citing insufficient information, unauthorized data collection from minors, and concerns about data deletion and consent withdrawal.

Worldcoin, which aims to create a global digital identity system using iris scans, has attracted over 2 million sign-ups before its official launch in July 2023. The company claims that the collected personal data is encrypted and safe, but critics argue that the system poses significant risks to user privacy and could be susceptible to misuse or hacking.

Notable venture capital firms like Andreessen Horowitz's (a16z) crypto arm and Bain Capital Crypto have invested in the Sam Altman project.