Worldcoin ‘disappointed’ with ban in Hong Kong, says authorities ‘overlooked’ aspects

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As an analyst with a background in technology and privacy law, I find the Worldcoin Foundation’s response to the Hong Kong regulatory authorities’ ban both understandable and disappointing. On one hand, I commend the foundation for emphasizing its commitment to operating lawfully and ensuring data privacy compliance, as these are critical aspects of any successful technology project, especially in the crypto space.

The Worldcoin Foundation voiced its displeasure over the latest regulatory restriction imposed by Hong Kong authorities, while reaffirming its dedication to conducting business in accordance with the law and ensuring data protection.

The Worldcoin Foundation has voiced its displeasure over Hong Kong regulators’ latest move to prohibit their activities, maintaining that they conduct their business legally and adhere strictly to all applicable data protection regulations, including the Personal Data (Privacy) Ordinance in Hong Kong.

In a statement to crypto.news, a representative from the Worldcoin Foundation explained that the organization runs in accordance with the law and is intended to adhere strictly to every regulation governing the acquisition and management of data.

“Among numerous comparable laws in various markets, there’s also the Hong Kong Privacy Ordinance governing Personal Data.”

Spokesperson for the Worldcoin Foundation

Worldcoin prioritizes equipping humanity for the era of artificial intelligence by setting new privacy benchmarks. They achieve this through various tactics, including collecting only necessary data, allowing users to manage their own information, and utilizing sophisticated technologies such as personal data storage, iris code elimination, and secure data sharing between parties. These methods ensure that user data is handled with utmost security and confidentiality.

Unfortunately, the authorities in Hong Kong failed to consider these points during their assessment of the human verification process.

Spokesperson for the Worldcoin Foundation

Following the discovery that Worldcoin, a San Francisco-based startup, had infringed upon Hong Kong’s privacy laws, the region’s privacy regulator, led by Ada Chung Lai-ling, made this determination. The concern centered around Worldcoin’s handling of biometric data, specifically face and iris images, which were deemed “unnecessary and excessive.” These practices were found to be in violation of local regulations.

According to crypto.news’ previous article, I, as an analyst, discovered that the Office of the Privacy Commissioner for Personal Data (PCPD) identified a breach on Worldcoin’s part regarding data access and correction rights notification to participants. This oversight led to further privacy law infringements. Consequently, the Privacy Commissioner issued an enforcement notice mandating Worldcoin to halt all operations related to the Worldcoin project in Hong Kong, involving the collection of iris and face images using iris scanning devices.

Established in 2019, Worldcoin is a cryptocurrency initiative spearheaded by Sam Altman, Max Novendstern, and Alex Blania. Their mission is to develop a universal digital identity system using advanced iris-scanning technology. In May 2023, the project successfully raised $115 million during its Series C funding round, with Blockchain Capital taking the lead, alongside investments from Andreessen Horowitz (a16z), Bain Capital Crypto, and Distributed Global.

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2024-05-24 11:06