China's Ministry of State Security has issued a rare public warning that a foreign company is allegedly using cryptocurrency token issuance to collect biometric data, posing a risk to personal and national security.
Warning from China's Security Ministry
The Ministry of State Security (MSS) of China has announced that a foreign company is using cryptocurrency token issuance as a cover to scan and collect iris data from users worldwide. The MSS emphasized that the biometric data being collected, including iris scans, is being transferred overseas. This warning highlights growing global concerns about how decentralized technologies, especially those linked to crypto and blockchain, may be misused to harvest sensitive user data.
Growing Concerns Over Biometric Privacy
While blockchain technologies are often touted for their transparency and user sovereignty, China's statement draws attention to the darker side of crypto adoption. Projects that incentivize users to submit sensitive information, such as iris scans, in exchange for tokens have become more common in the Web3 space. These schemes often position themselves as building digital identity systems for a decentralized future. However, governments like China are becoming increasingly cautious, especially when data collection practices cross borders and involve citizens unknowingly handing over their biometrics to foreign entities.
National Security Wake-Up Call
China's focus on the national security implications of biometric data misuse suggests that the issue goes beyond personal privacy. State actors and security agencies may view these projects as potential tools for espionage, surveillance, or social engineering on a global scale. The alert from the MSS may trigger more regulatory scrutiny worldwide, pushing crypto projects—especially those involving identity verification or biometric data—to operate with stricter transparency and oversight.
The warning from China's Ministry of Security underscores the importance of users being vigilant about what information they are willing to give up in exchange for digital assets and the need for stringent regulations to protect biometric data.
