China Warns Crypto Project Over Global Iris Data Collection
China accuses a foreign crypto firm of collecting global iris data, warning of threats to personal and national security.
- China says a crypto firm is using tokens to collect iris data
- The data could threaten personal and national security
- Authorities warn the public about biometric privacy risks
China’s Ministry of State Security (MSS) has issued a rare and direct public warning, stating that a foreign company is allegedly using cryptocurrency token issuance as a cover to scan and collect iris data from users worldwide. This operation, according to the ministry, not only jeopardizes individuals’ personal information but also poses a serious risk to national security.
The MSS did not name the company in its announcement, but it emphasized that the biometric data being collected—including iris scans—is being transferred overseas. This warning highlights growing global concerns about how decentralized technologies, especially those linked to crypto and blockchain, may be misused to harvest sensitive user data.
Biometric data, unlike passwords or email addresses, cannot be changed once compromised. The misuse of such data could lead to long-term consequences, ranging from identity theft to state-level cyber threats.
Rising Concerns Over Biometric Privacy in Crypto
While blockchain technologies are often promoted for their transparency and user sovereignty, China’s statement brings attention to the darker side of crypto adoption. Projects that incentivize users to submit sensitive information—like iris scans—in exchange for tokens have grown more common in the Web3 space.
These schemes often position themselves as building digital identity systems for a decentralized future. However, governments like China are becoming increasingly cautious, especially when such data collection practices cross borders and involve citizens unknowingly handing over their biometrics to foreign entities.
The warning serves as a stark reminder for users to think critically about what they’re giving up in exchange for digital assets.
A National Security Wake-Up Call
China’s focus on the national security implications of biometric data misuse suggests that the issue goes beyond personal privacy. State actors and security agencies may view these projects as potential tools for espionage, surveillance, or social engineering at a global scale.
This alert from the MSS may trigger more regulatory scrutiny worldwide, pushing crypto projects—especially those involving identity verification or biometric data—to operate with stricter transparency and oversight.
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