China Warns: Iris Data in Crypto Poses Major Security Risk—Here’s Why It Matters

Your eyeballs might be the next attack vector. China's Ministry of Industry and IT just dropped a bombshell warning about biometric vulnerabilities in blockchain projects.

When iris scans meet decentralized ledgers, security gaps widen. The ministry flagged 'critical risks' in crypto programs using biometric authentication—calling out weak encryption and centralized storage as prime targets.

Finance jab: Meanwhile, VC-backed startups keep pitching 'biometric wallets' like they’re the next stablecoin revolution. Spoiler—they’re not.

This isn’t theoretical. Hackers could bypass multi-sig protections by cloning iris patterns, turning your unique biological signature into a universal key. No 2FA required.

The takeaway? Until projects implement zero-knowledge proofs for biometrics, your safest vault remains a 24-word seed phrase written on paper—stored far from any camera.

TLDR

• China’s Ministry of State Security issues warning about iris data collection.
• Foreign companies offering cryptocurrency in exchange for biometric data raised security concerns.
• China highlights risks of biometric data leakage for both privacy and national security.
• Worldcoin-style iris scanning linked to potential espionage and data misuse.

Chinese Ministry of State Security has issued a warning regarding the potential risks of biometric data collection, particularly iris scans, in exchange for cryptocurrency. The warning highlights the national security threat posed by foreign companies involved in such practices. Though the ministry did not name the specific project, its description points to Worldcoin, a cryptocurrency platform that has faced scrutiny for its collection of biometric data, including iris scans.

Worldcoin Under Scrutiny Over Data Privacy Issues

The Chinese Ministry of State Security expressed concerns about the collection of iris data on a global scale, facilitated by foreign companies offering cryptocurrency in exchange. The authority emphasized that these companies collect highly sensitive biometric data, which could be misused if not properly protected. China has previously raised concerns about the risks posed by foreign companies, particularly in relation to privacy and data security.

Worldcoin, known for its ambitious project to create a global identity verification system through biometric data, has been met with regulatory resistance in several countries.

In May, Indonesia suspended Worldcoin’s operating permit following reports of suspicious activities involving the collection of user data for its World ID system. The company responded by pausing its proof of human verification services in the region.

Biometric Data Collection and National Security

Biometric technologies, such as iris scans, have grown rapidly due to their accuracy and convenience. They enable fast and reliable identification of individuals.

However, China’s Ministry of State Security cautioned that the collection and transfer of such data, especially by foreign entities, pose significant risks. The potential for misuse of biometric data has been linked to espionage and national security threats.

The ministry’s statement highlighted several incidents where foreign intelligence agencies allegedly exploited biometric data for espionage. These concerns are further amplified by the high risk of data leaks, as demonstrated in other cases of data theft involving fingerprint and facial recognition systems.

China’s Legal and Security Measures for Data Protection

China has implemented strict laws and regulations to protect its citizens’ data. These include the Data Security Law, Cybersecurity Law, and Personal Information Protection Law, among others. These regulations are designed to safeguard personal information, especially sensitive biometric data, and to ensure compliance with security standards.

In addition to legal measures, Chinese authorities urge citizens to be cautious when providing biometric data. They recommend that individuals inquire about the storage and processing policies of any company collecting such information. Furthermore, officials suggest adopting multi-layered security strategies, such as combining multiple biometric identifiers for enhanced protection.

The Chinese Ministry of State Security has also encouraged public vigilance in reporting suspicious activities related to biometric data collection. Citizens can contact authorities through official reporting channels to help prevent unauthorized data collection and ensure compliance with national security protocols.