China's Ministry of State Security has issued a warning regarding the potential national security threats posed by Worldcoin's iris data collection.
China's Ministry of State Security Alert
On August 6, 2025, China’s Ministry of State Security released a warning highlighting Worldcoin’s iris scan data collection as a possible threat to national security and personal privacy. This official stance was disseminated via WeChat, drawing significant attention from both domestic and international observers.
Market Reaction to the Warning
Following the alert from China, the WLD token experienced an over 4% decline, trading at approximately $0.93. Analysts noted that other major digital currencies like ETH and BTC did not show an immediate response to the announcement.
Impact on the Crypto Industry
The warning raises critical questions about data privacy and security in the crypto space. Worldcoin, developed by Tools for Humanity and co-founded by Sam Altman, employs iris scanning technology for cryptocurrency rewards. The project has previously faced regulatory challenges in countries like Indonesia, Germany, and France, underlining the importance of concerns surrounding biometric data. Investors are closely monitoring the potential implications for the cryptocurrency market.
The situation with Worldcoin highlights the growing concerns over data collection security and its impact on the cryptocurrency market. Investors and users alike will need to watch how this unfolds and the potential regulatory responses that may arise.
