Sanctions Imposed! Hong Kong Rules ChatGPT Father's Project Violates Privacy Ordinance, Orders Cessation of Iris Collection

The Office of the Privacy Commissioner for Personal Data in Hong Kong has completed its investigation into the Worldcoin project, led by ChatGPT's father Sam Altman, and released its findings on Wednesday, May 22. The investigation concluded that Worldcoin violated privacy regulations and ordered the cessation of collecting iris and facial images from Hong Kong citizens.

Worldcoin, a Web3 project aiming to achieve universal basic income by verifying identity through iris scans, has sparked a global trend by allowing anyone to claim WLD tokens for free.

However, Worldcoin has also faced regulatory scrutiny worldwide due to the significant privacy implications of collecting biometric data.

After considering the facts of the case and the information gathered during the investigation, Privacy Commissioner Ada Chung ruled that Worldcoin's operations in Hong Kong violated the Personal Data (Privacy) Ordinance regarding the principles of data collection, retention, transparency, access, and correction.

Following the announcement of the sanctions, the value of WLD tokens fell, trading at $4.95.

The Privacy Commissioner's Office initiated an investigation into the "Worldcoin" project in January 2024 due to significant personal data privacy risks involved in its operations in Hong Kong.

From December 2023 to January 2024, the Privacy Commissioner's Office conducted 10 undercover operations at six Worldcoin operating points in Hong Kong.

On January 31, 2024, armed with a court warrant, the Privacy Commissioner's Office entered six Worldcoin operation points located in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central, and Causeway Bay for further investigation.

Following two rounds of inquiries, the investigation has now been completed.

The investigation revealed that participants in the "Worldcoin" project had to allow the organization to collect facial and iris images through iris scanning to "verify" human identity and create iris codes. This process granted them a registered identity (World ID) and allowed them to receive Worldcoin virtual currency periodically for free.

Worldcoin confirmed that during its operations in Hong Kong, it conducted facial and iris scans on a total of 8,302 individuals.

In response to ongoing privacy concerns, Worldcoin announced in early April that it would introduce a new measure allowing users to permanently delete the "iris codes" created through iris scanning.

"Now, Worldcoin ID holders have more control, as they can permanently delete their iris codes, which are the digital information generated by their unique iris textures," the project team stated.

Additionally, Worldcoin emphasized that when users request code deletion, a six-month cooling-off period will be provided. After the cooling-off period, the codes will be permanently deleted and cannot be restored.