China Warns: Crypto Projects Are Scanning Your Eyes—And It Could Be a National Security Threat
In a chilling new warning, China’s Ministry of State Security has raised the alarm over the rising use of biometric technology by cryptocurrency-related initiatives—especially those collecting sensitive iris data under the guise of distributing digital assets.
The MSS issued a public bulletin exposing the dangers tied to advanced biometric recognition systems, such as facial scans, fingerprints, and particularly, iris recognition. According to the MSS, one unnamed foreign company has been conducting mass iris scans globally while promoting a crypto token—an act Beijing now considers not only a violation of personal privacy, but a potential threat to national security.
Although the bulletin didn’t specifically name the company, all signs point to Worldcoin, a controversial digital ID and crypto project founded by OpenAI CEO Sam Altman. Worldcoin’s model involves scanning people’s irises in exchange for its native cryptocurrency, WLD. Despite its wide rollout across 160 countries, China remains conspicuously excluded.
“This kind of biometric data collection, disguised as crypto distribution, poses a severe risk to individual security and could be exploited by foreign actors,” warned the MSS.
The Danger of Iris Data: Once Leaked, Always Leaked
Unlike passwords or personal information that can be changed or revoked, iris data is permanent. The MSS emphasized that once this ultra-sensitive biometric information is compromised, it cannot be undone. It effectively becomes a lifelong vulnerability.
Beyond irises, facial recognition was also listed as a critical concern. The bulletin pointed to cases where foreign intelligence agencies have forged facial data to carry out espionage, infiltrating critical infrastructures and sensitive workplaces.
“Biometric identification is convenient,” the statement acknowledged, “but people must be extremely cautious when handing over such deeply personal data.”
Buterin Weighs In: Digital IDs Must Be Decentralized and Pluralistic
As concerns mount over centralized biometric databases, Ethereum co-founder Vitalik Buterin has proposed a radically different approach. In June, Buterin introduced the concept of “pluralistic identity”—a framework that blends multiple sources of verification rather than relying on one all-powerful entity or biometric marker.
Buterin warned that even privacy-enhancing technologies like zero-knowledge proofs (ZKPs) could be problematic if they require a rigid, one-per-person digital identity. Such systems, he cautioned, might eliminate pseudonymity and expose individuals to unwanted surveillance by governments or employers.
He also criticized identity systems based on wealth—suggesting that “proof of money” is not only exclusionary but inherently unfair.
His solution: A more inclusive, decentralized identity model, verified by a combination of sources like government agencies, social networks, and grassroots communities—ensuring no single system holds all the power.
Bottom Line: The Battle for Your Biometrics Has Begun
China’s latest bulletin is more than just a cautionary tale—it’s a warning shot in the global debate over privacy, surveillance, and digital identity. With crypto projects increasingly tying real-world data to digital rewards, governments and citizens alike must tread carefully.
As Worldcoin and similar ventures push forward with their ambitious biometric-based models, the world faces a tough question:
Are we trading away our identities for tokens?
And if so, who’s really cashing in?
