China Flags Iris-Scanning Crypto Projects as National Security Risk

China's Ministry of State Security has issued a warning against foreign cryptocurrency projects that collect biometric data, specifically iris scans, in exchange for token rewards. The advisory highlights concerns over data privacy and national security, with practices resembling those of Worldcoin—a project co-founded by OpenAI CEO Sam Altman.

The MSS alleges that sensitive iris data is being transferred overseas, posing risks of espionage and identity fraud. While Worldcoin isn't explicitly named, its model aligns with the described activities. Regulatory scrutiny is intensifying globally, with Germany, France, and Kenya already investigating the project.

Beijing may impose stricter controls on biometric-for-crypto business models, signaling a potential crackdown on similar initiatives. The MOVE reflects broader unease about data sovereignty and the ethical implications of decentralized identity verification.