China's Ministry of State Security has raised serious concerns about foreign cryptocurrency firms collecting biometric data, leading to negative market reactions.
Ministry's Warning
China's Ministry of State Security issued a warning against foreign companies using cryptocurrency to collect biometric data, such as iris scans. The statement emphasizes that such practices could threaten privacy and national security.
Market Reaction to the Announcement
Following the ministry's announcement, Worldcoin's WLD token experienced a 4% drop in its market price. Investors reacted to potential risks associated with biometric data collection in the cryptocurrency space.
Future of Cryptocurrency Regulation
Chinese authorities stress the risks to personal information security and the need for caution when handling biometric data. Previously, other countries, including Germany, France, and Kenya, also expressed concerns about similar practices. Future regulatory changes regarding crypto projects involving biometric data are anticipated.
The warning from China raises important questions about the regulation of biometric data in the cryptocurrency industry. The market's reaction reflects investor sentiments regarding potential regulatory changes.
