China’s Ministry of State Security (MSS) has warned that some cryptocurrency projects are using biometric tools, such as iris and facial scans, to collect sensitive personal information through token giveaways.
In a public notice released on August 6, the agency said these actions could harm individual privacy and pose a risk to national security.
The MSS pointed to a foreign company that had gathered iris data from people around the world while claiming to distribute crypto assets. According to the bulletin, this data was later transferred to another location.
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Although the company was not named, the description closely resembles Worldcoin, a project led by OpenAI co-founder Sam Altman, which trades its WLD
$0.9732
token for eye scans and operates in over 160 countries.
The ministry described iris scanning as a precise method typically used in secure environments. Because iris patterns are stable and unique, they can serve as long-term digital identifiers. If stolen, these details cannot be changed like passwords or PIN codes.
The MSS also said poor handling or storage of face data could result in leaks, which might lead to identity theft, financial fraud, or even access to restricted areas. It also claimed that intelligence services in other countries had used fake facial data to carry out spying operations, including entering sensitive workplaces.
The agency advised people to ask questions before agreeing to any biometric scan and to understand how their data will be used and stored.
Meanwhile, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) recently warned about the growing use of crypto kiosks in scams. What did the agency say? Read the full story.
