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AII-1002-08621
ConfirmedA court, a regulator or the organization itself has stated the core facts, or the record cites a court or regulator source.

China warns of national security risks from iris data collection by crypto projects

China's Ministry of State Security issued a public warning that cryptocurrency projects collecting iris scan data, reportedly including World, pose national security and privacy risks through potential espionage and data theft. The MSS cautioned that iris biometric data is unique and irreplaceable, and warned citizens to be cautious about providing such information.

6 August 2025 Β· World Β· Privacy and surveillance
6 August 2025
AII-1002-086212 sources ↓
Quick facts
Category
Privacy and surveillance
Country
China
Source
Cointelegraph
Date
6 August 2025
Drafted by
Raidu Incident Detection

What happened

China's Ministry of State Security issued a public security bulletin on August 6, 2025, warning of national security risks from biometric data collection by cryptocurrency projects. The MSS specifically cited an unnamed overseas company that 'under the guise of issuing cryptocurrency tokens, scanned and collected iris information from users worldwide and then transferred the data source,' referring reportedly to World.

The MSS noted that iris patterns are highly stable, difficult to replicate, and possess exceptional precision and uniqueness, making them prime targets for criminal exploitation. The ministry warned that once compromised, iris data cannot be altered or replaced, unlike passwords.

Reported impact

The MSS warned that iris data collection poses risks to both personal information security and national security. The bulletin cautioned that improper storage and handling of biometric data can lead to leaks that endanger personal privacy, property security, and national security.

Index analysis

The MSS cited cases showing foreign intelligence agencies have illegally stolen facial data from key targets, forged the information to obtain classified materials, and infiltrated sensitive workplaces to conduct espionage. The ministry also referenced a foreign company whose fingerprint payment system suffered repeated hacking breaches due to poor management, resulting in severe data leaks.

The bulletin warned that the exposure of biometric information carries risks beyond password breaches, with potential for AI-powered face swaps and deepfake technologies that threaten personal privacy and financial security.

Governance controls

The MSS advised the public to be cautious when providing biometric information and stated that individuals have the right to require data collectors or service providers to clearly explain how data will be stored, processed and used, to review privacy policies in detail, and to remain alert to excessive collection.

Classification

Category
Privacy and surveillance
Industry
Digital security
Country
China
Harm status
Potential harm
Intent
Unknown
Timing
Unknown
Harm types
Public interest, Human or fundamental rights
Harmed
General public
Failure modes
Data leak
AI systems
World iris scanning system
Regulations
GDPR (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

Cointelegraph
Eye-scanning crypto projects pose national security risks, China warns
6 August 2025
Global Times ηŽ―ηƒζ—ΆζŠ₯θ‹±ζ–‡η‰ˆ
MSS warns of foreign espionage risks from personal information theft
6 August 2025