China Accuses Foreign Entity of Misusing Crypto for Surveillance Through Iris-Scanning

A China security ministry has warned that foreign agents are using crypto schemes to collect sensitive biometric data, including iris scans, posing a threat to both personal privacy and national security.

Local outlet Global Times reported Wednesday that the ministry outlined the growing risks tied to biometric technologies.

It said recent cases have shown foreign intelligence agencies illegally harvesting facial data from targeted individuals to carry out espionage activities inside China.

The ministry did not identify specific firms, but the description of the scheme closely mirrors the model used by World, the crypto startup co-founded by OpenAI CEO Sam Altman.

China's Ministry of State Security has publicly warned that a foreign company is using the issuance of cryptocurrency tokens as a gimmick to scan and collect user iris information worldwide and transfer the data source, posing a threat to personal information security and even…

— Wu Blockchain (@WuBlockchain) August 6, 2025

Crypto Token Incentives Used to Collect Iris Data, China Ministry Says

World, formerly known as Worldcoin, offers crypto tokens in exchange for users’ iris scans. The company claims the scans help verify a user’s unique identity and enable digital financial access, particularly in underserved markets. However, World was not explicitly named in the MSS advisory.

Cryptonews has reached out to World for comment on the matter.

The ministry described a case in which a foreign company allegedly used the issuance of cryptocurrency tokens as a pretext to scan and collect iris data from users around the world. This data was then transferred overseas, according to the statement, raising red flags for national and individual security.

Officials Link Biometric Data Leaks to National Security Threats

Biometric identification technologies, the ministry noted, have gained rapid traction in recent years. Used for their speed and accuracy, these systems collect and process facial features, fingerprints, irises and even body movements. While these tools offer convenience, the ministry warned that the risk of data leaks and misuse has also grown significantly.

Officials cited cases in which foreign spies forged biometric information to gain access to classified materials or infiltrate sensitive workplaces. In another example, a fingerprint payment system linked to a corporate database was repeatedly breached due to lax cybersecurity, resulting in major data leaks.

Further, the ministry said that iris patterns are especially sensitive. They are highly stable and nearly impossible to replicate, making them valuable for authentication in high-security environments. Their uniqueness, however, also makes them a prime target for malicious actors, the ministry said.

China Warns Citizens to Scrutinize Biometric Data Practices

The warning comes as biometric systems continue to expand across sectors ranging from finance to border control. In this context, the ministry urged the public to remain cautious when handing over biometric data, especially for services involving facial, fingerprint or iris recognition.

Citizens, the statement said, have the right to ask data collectors to explain how personal information will be stored, processed and used. The ministry also advised individuals to review privacy policies carefully and to stay alert for signs of excessive data collection.

Although the ministry refrained from proposing new regulations, its statements reflect growing unease within China’s security establishment regarding the convergence of digital identity technologies and cross-border data transfers.