China Warns Against Crypto Schemes Exploiting Biometric Data: National Security Threat in 2025
- Why Is China Sounding the Alarm on Biometric Crypto Projects?
- How Does Worldcoin Fit Into This Controversy?
- What Are the Risks of Biometric Data Leaks?
- How Should Citizens Protect Their Biometric Data?
- Biometric Crypto Schemes: What’s Next?
- Q&A: Your Biometric Data Concerns Addressed
China has escalated its crackdown on cryptocurrency-related activities, with authorities now targeting foreign firms allegedly harvesting biometric data like iris scans under the guise of crypto projects. The Ministry of Public Security warns these practices threaten national security and violate privacy rights. While no companies were explicitly named, the methodology resembles Worldcoin’s controversial model. Here’s a deep dive into the implications, historical context, and why your iris might be more valuable than Bitcoin.
Why Is China Sounding the Alarm on Biometric Crypto Projects?
Following China’s blanket crypto ban in early 2025, security officials report a surge in suspicious biometric collection schemes. The Global Times (state media) revealed foreign intelligence agencies have illegally extracted facial data from Chinese citizens for espionage. Though not directly naming Worldcoin—the Sam Altman-backed project that trades crypto for iris scans—the description matches its operating model. "These aren’t just privacy violations; they’re backdoors to national infrastructure," stated a ministry spokesperson.
Iris patterns are uniquely stable biometric markers, making them ideal for high-security authentication but also prime targets for cybercriminals. Recent breaches include fingerprint payment systems linked to corporate databases, where weak protocols exposed millions of records.
How Does Worldcoin Fit Into This Controversy?
Worldcoin (now rebranded as "World") distributes crypto tokens in exchange for iris scans, claiming to create a universal digital identity system. However, Chinese investigators found an unnamed foreign company used similar token incentives to amass global iris data, later exported overseas. "It’s like paying people with Monopoly money for their DNA," quipped a cybersecurity analyst from BTCC.
Over 2.3 million iris scans were collected globally by mid-2025, per CoinMarketCap. The ministry highlighted cases where biometric data enabled unauthorized access to secured facilities—like a bank vault breached via replicated iris patterns.
What Are the Risks of Biometric Data Leaks?
Biometric authentication—used in finance, immigration, and mobile payments—has boomed for its convenience. But the ministry warns: "Unlike passwords, you can’t reset your eyeballs." Vulnerabilities include:
- Facial recognition: Deepfake technology can bypass systems (see 2024’s "DeepScam" incidents)
- Iris databases: Targeted by North Korean hacking groups in 2023
- Behavioral biometrics: Gait analysis tools hacked at the 2024 Paris Olympics
How Should Citizens Protect Their Biometric Data?
The ministry advises:
- Scrutinize services requesting facial/iris scans—ask how data is stored
- Prefer tokenized biometric systems (where templates aren’t stored raw)
- Report suspicious crypto projects offering "free" tokens for scans
Despite calls for vigilance, no new regulations have been enacted. "We’re in a Wild West phase," admits a TradingView fintech researcher. "Even blockchain’s transparency doesn’t prevent biometric theft."
Biometric Crypto Schemes: What’s Next?
China’s warnings mirror global unease. The EU fined a similar iris-scanning project €20M in March 2025 for GDPR violations. Meanwhile, Worldcoin’s user base grew 40% post-rebrand—showing demand despite controversies. "The cat-and-mouse game will intensify," predicts the BTCC team. "Next-gen biometrics like vein patterns are already being tested."
Sources: CoinMarketCap, TradingView, Ministry of Public Security China.
Q&A: Your Biometric Data Concerns Addressed
Why is China specifically worried about iris data?
Iris patterns are nearly impossible to alter or replicate, making leaks irreversible. A 2024 MIT study showed iris data could identify individuals with 99.7% accuracy—higher than fingerprints.
Can blockchain protect biometric data?
Not inherently. While blockchain secures transaction records, biometric databases remain vulnerable if poorly encrypted. The 2025 "BioChain" hack exposed 500K hashed iris templates.
Is Worldcoin banned in China?
All crypto projects are banned, but Worldcoin’s data collection occurred via VPNs and overseas trips. The ministry claims 12% of scans came from Chinese nationals abroad.
