Worldcoin (WLD) drops below $5 following Hong Kong’s ban
Hong Kong authorities have order Worldcoin (WLD) to cease biometric data collection in the country.
Despite regulatory setbacks, Worldcoin’s user base has grown to 10 million users.
The price of WLD temporarily dropped below $5 following the ban
Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) has issued a directive to halt the operations of Worldcoin (WLD) within its jurisdiction.
The order follows concerns raised by the PCPD regarding Worldcoin’s collection of biometric data, particularly iris scans, as part of its identity verification process.
The PCPD deemed this data collection excessive, unnecessary, and unfair, in violation of Hong Kong’s Personal Data (Privacy) Ordinance.
Investigation reveals contravention of data protection principles
The PCPD’s investigation, initiated in January 2024, uncovered several contraventions of data protection principles by Worldcoin.
Notably, participants were required to provide face and iris images for identity verification to receive Worldcoin tokens.
However, the PCPD found this data collection to be unnecessary and excessive, raising concerns about privacy risks associated with the storage and handling of sensitive biometric data.
Additionally, Worldcoin’s failure to provide adequate information in Chinese, the primary language for many participants, further compounded the regulatory issues.
As a result of these findings, the Privacy Commissioner for Personal Data, Ms. Ada CHUNG Lai-ling, has served an enforcement notice on Worldcoin Foundation, directing it to cease all operations involving the scanning and collection of biometric data in Hong Kong.
Failure to comply with this directive could result in further regulatory action against the cryptocurrency project.
Impact on Worldcoin (WLD) price
Following the announcement of Hong Kong’s ban on Worldcoin’s biometric data collection, the value of Worldcoin (WLD) temporarily dropped to $4.93 before resurging to $5.12 at press time.
With the sudden plunge below $5 sent shockwaves across the community of WLD holders, who are closely monitoring the situation amidst regulatory scrutiny and concerns over data privacy practices.
Notably, the ban adds to the challenges faced by Worldcoin, which has already encountered regulatory obstacles in other jurisdictions such as Kenya, Spain, Portugal, and Buenos Aires.
However, despite the regulatory setbacks, Worldcoin’s user base continues to grow, with its World App wallet reaching 10 million users in less than a year.
Tools for Humanity (TFH), which is the company behind the Worldcoin project, has made efforts to address privacy concerns, including the recent open-sourcing of its ORB technology and enhancements to user data control features.
The post Worldcoin (WLD) drops below $5 following Hong Kong’s ban appeared first on CoinJournal.
