Hong Kong Regulator Orders Crypto Project Worldcoin to Cease Operations
PPCPD, the regulatory authority of Hong Kong, recently asked Worldcoin to halt operations in the region. Regulators from the area have asked the AI training project to halt services on account of reservations associated with biometric data.
As per the report, authorities have expressed concerns about the sensitive nature that WLD gathered for 10 years, inclusive of face and iris images were not legal.
Worldcoin to Violate Regulations
The Privacy and Personal Data (PCPD) has also opened an inquiry into WLD. Regulators have purported that the project has violated regulations as per the Personal Data Privacy and Ordinance (PDPO). On 22nd May 2024, PCPD Commissioner Ada Chung Lai-Ling issued a notice against WLD.
The notification issued the order to halt all services of the WLD project within Hong Kong with immediate effect. This directive is also applicable to data collection in the form of images and iris scans using Orbs.
PCPD opened the investigation of WLD in January 2024. The purpose of the investigation was to trace the source of the information and determine verification methods that posed risks to Hong Kong citizens.
The regulator intends to ensure compliance with the legal requirements of PDPO laws within its jurisdiction. PCPD further revealed 10 covert operations of 6 premises regarding WLD activities for the duration of Dec 2023 and Jan 2024.
Hong Kong Data Regulatory Agency Launches Investigation on WLD
PCPD officials have stated that WLD is collecting face images which have been deemed an unnecessary practice to verify the humanness of users. The officials are also critical of iris can devices maintaining that it was possible to perform in-person verification at the location of business.
In this manner, WLD Orb operators scanning and adding face images of participants was an unnecessary step.
Additionally, PCPD has also retained that WLD has refrained from offering proper information which has served as an obstacle for investors to make informed decisions and grant legible authentication.
This investigation has also revealed that the privacy notice issued by WLD was not issued in Chinese language. It meant that the participants with no knowledge of English could not read project policies, terms, and practices, etc.
A PCPD spokesperson issued a detailed verdict on the matter. The officials noticed that iris scanning device operations at designated locations do not disclose sufficient information for investors which allow them to grasp all the facts mentioned in aforementioned documents.
The statement retained that WLD has not informed participants about possible risks associated with the disclosure of biometric data and refrained from replying to user inquiries.
Worldcoin Responds to PCPD Regarding Policy Disputes with the Regulators
WLD-issued statistics indicated that the project has scanned a total of 8,302 investors with faces and irises scanned for data verification for their Hong Kong operations. The project made a debut in 2021 with 2 million participants signing up before the official launch set in July 2023. This is not the first incident where WLD is faced with disagreements with regulators
WLD is faced with regulatory pushback in various sovereign jurisdictions. Kenyan regulators have suspended WLD services citing privacy issues. Additionally, the project has also halted iris scans in India.
Meanwhile, another Cointelegraph article recently revealed that the Central Bank of Hong Kong has been studying the impact of AI on the banking sector.
HKMA deputy head Arthur Yuen told reporters that AI tech will enhance the skills of the workforce allowing them to persist alongside. On 23rd May, 2024 the Monetary Authority of Hong Kong (HKMA) the regional central bank directed financial firms within its jurisdiction to plan training strategies to seamlessly integrate the AI tech within the banking industry.
Yuen further noticed that a number of financial institutions have started to re-skill their workers for new roles in the wake of upcoming technical upgrades. He revealed that banks have updated around 2% of their human resource in new roles after facilitating training programs.
He stated that it is a successful event that allows banks to retain their frontline staff and reassign them to proactive roles such as wealth management, risk assessment and compliance, etc.
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