Privacy Alert: China Warns Against Iris-Scanning Crypto Projects in 2025
- Why Is China Targeting Iris-Scanning Crypto Projects?
- Global Crackdown: From Europe to Kenya
- Vitalik Buterin’s Alternative: “Pluralistic Identity”
- Could Worldcoin Adapt?
- FAQ: Iris Scans and Crypto Privacy
China’s Ministry of State Security (MSS) has raised alarms over crypto projects using iris scans for token rewards, calling them a threat to personal data security and national sovereignty. This comes as global regulators, from Europe to Africa, crack down on biometric data collection by platforms like Worldcoin. Meanwhile, Ethereum’s Vitalik Buterin proposes decentralized identity solutions as a compromise. Here’s a deep dive into the controversy and its implications for privacy in the crypto space.
Why Is China Targeting Iris-Scanning Crypto Projects?
In an August 6, 2025 bulletin, China’s MSS flagged irreversible risks of iris-based verification, stating:The warning specifically cites Worldcoin (now rebranded as “World”), which distributes its WLD token in exchange for iris scans. China, already hostile toward cryptocurrencies, now joins a growing list of nations questioning the ethics of such models.
the MSS noted. Source: Ministry of State Security, China.
Global Crackdown: From Europe to Kenya
Regulators worldwide are pushing back:
- Europe: Spain’s AEPD and Germany’s BayLDA forced Worldcoin to halt iris scans in December 2024, citing GDPR violations. By July 2025, operations in Germany were “temporarily paused” amid regulatory pressure.
- Kenya: In May 2025, Nairobi’s High Court ordered the deletion of iris data from 300,000 citizens.
- Latin America: Argentina and Chile criticize Worldcoin for targeting low-income groups with token incentives.
Vitalik Buterin’s Alternative: “Pluralistic Identity”
Ethereum’s cofounder argues centralized biometric systems risk enabling surveillance. In a June 28, 2025 blog post, he proposed aggregating attestations (e.g., government IDs, social proofs) without granting any single entity control.he warned. The EU’s eIDAS 2.0 framework is exploring similar decentralized models.
Could Worldcoin Adapt?
With mounting legal challenges, Worldcoin faces a dilemma: cling to its iris-scanning model or diversify its verification methods. The project’s silence on adopting Buterin’s ideas suggests a rocky road ahead.
— Justine Ferrari, BTCC Analyst
FAQ: Iris Scans and Crypto Privacy
Why is iris data considered high-risk?
Iris patterns are unique and unchangeable. If compromised, users can’t “reset” their biometrics like a password.
Which countries have banned Worldcoin’s iris scans?
Germany, Spain, Kenya, and China have imposed restrictions or bans as of 2025.
What’s the alternative to biometric verification?
Vitalik Buterin advocates for multi-source decentralized IDs (e.g., combining social media, government records).
