China's Ministry of State Security has issued a warning regarding the collection of biometric data, significantly impacting Worldcoin's token market.
China's MSS Warning
On August 6, 2025, China's Ministry of State Security issued a warning about foreign firms collecting biometric data, particularly targeting Worldcoin's iris scan practices. The ministry highlighted risks to national security and individual privacy related to such actions. According to an official statement, foreign companies incentivize citizens to scan their irises in exchange for cryptocurrency tokens, posing serious threats to security.
Decline in WLD Token Value
Following the warning, Worldcoin's token (WLD) dropped by 4%, reaching a price of $0.93. Market reactions were localized to WLD, with minimal impact seen in major cryptocurrencies like Ethereum and Bitcoin. This situation highlights the importance of ongoing debates surrounding privacy and legal implications of biometric data usage.
Impact on Global Data Privacy Standards
Worldcoin has previously faced regulatory challenges in countries such as Indonesia and Germany, emphasizing the need for compliance with data protection standards. Experts predict that the current warning may lead to enhanced regulatory scrutiny or project adaptations to conform to data privacy laws.
Thus, the Chinese ministry's warning raises awareness about privacy issues and may lead to more stringent requirements for projects dealing with biometric data.
