Worldcoin’s WLD token drops 4% to $0.93 after China issues national security warning over iris-scanning crypto projects.
China’s Ministry of State Security (MSS) has issued a national security warning over the misuse of biometric data by foreign companies offering cryptocurrency rewards in exchange for iris scans, a practice closely matching the model used by Worldcoin, the crypto project co-founded by OpenAI CEO Sam Altman.
In a post published on its official WeChat account on August 6, the MSS described a case where a foreign firm collected iris data globally by offering token incentives, and then transferred that sensitive information overseas. The agency called the activity a threat to both personal privacy and national security.
While the company wasn’t directly named in the warning, the description mirrors Worldcoin, which offers its WLD token to users who verify their identity through iris scans. OpenAI, known for developing the ChatGPT AI chatbot, shares a Co-Founder with the project.
The warning echoes the increasing international worries about data privacy. German, French, and Kenyan regulators have already initiated inquiries into Worldcoin, raising concerns about how it gathers data, informed consent, and its potential to spy.
The MSS also cited other cases where facial data was stolen and used by foreign intelligence agencies to create deepfake identities and access secure locations.
This latest advisory suggests Beijing may tighten oversight or impose restrictions on biometric-for-crypto business models.
As of August 6, Worldcoin’s WLD token is trading at $0.93, down 4% in the last 24 hours, according to CoinMarketCap. The platform tracks real-time prices, market caps, and trading volumes for thousands of cryptocurrencies.
The warning highlights growing global clashes between tech innovation in digital identity systems and national security concerns. Governments and institutions worldwide are increasingly becoming alert about how citizens’ biometric data is collected, stored, and transferred.