The Hong Kong Privacy Commissioner's Office (PCPD) has launched an investigation into Worldcoin, a cryptocurrency project founded by Sam Altman, also the CEO of OpenAI, the parent company of ChatGPT. Hong Kong Economic Times reported that the investigation, carried out under a court warrant, focuses on potential serious personal data privacy risks associated with the Worldcoin project and potential violations of the Privacy Ordinance.
Worldcoin, introduced in Hong Kong last year, offers users 25 digital currency WLD upon completing iris recognition and registration. The project aims to utilize blockchain technology to establish a digital identity and digital currency entity system. Key components include global identity (World ID), world currency (WorldCoin) and an electronic wallet (WorldAPP) connecting identity recognition and currency.
Privacy breaches concerns
Despite its popularity and connection with renowned industry players like Sam Altman, concerns about privacy breaches have prompted the privacy commissioner to take action on Worldcoin. On Wednesday, the PCPD entered six premises in Yau Ma Tei, Kwun Tong, Wan Chai, Cyberport, Central and Causeway Bay to conduct thorough investigations.
The Privacy Commissioner's Office asserts that Worldcoin's operation in Hong Kong poses substantial risks to personal data privacy. The collection and processing of sensitive personal data by the organization could potentially breach the Privacy Ordinance. The PCPD, acting proactively to safeguard public privacy, initiated the investigation in accordance with established procedures.
Under the Privacy Ordinance, the privacy commissioner exercised their powers to enter the specified premises with court warrants, compelling relevant parties to provide documents and information crucial to the investigation. Privacy Commissioner for Personal Data Chung Liling has urged the public to exercise caution regarding the Worldcoin project.
Simultaneously, the utility token of Worldcoin, WLD, has experienced a significant drop in value. As of now, the price of WLD stands at $2.33, reflecting a 12.94% decrease in the last 24 hours. The investigation's impact on the token's value raises further questions about the project's future and the potential implications for investors and users alike.