China's Ministry of State Security (MSS) has issued a warning regarding the use of biometric data by cryptocurrency projects, specifically highlighting the risks posed by iris-scanning technologies. The bulletin cites concerns that the collection of biometric data, including iris scans, could threaten personal privacy and national security. The MSS referenced a foreign company that allegedly collected iris scans under the pretense of issuing cryptocurrency tokens, warning that this data could be exploited for espionage. The ministry identified iris recognition as a high-precision biometric method used in sensitive operations, making it a prime target for misuse. It also noted that improper storage of biometric data can lead to significant security breaches, potentially facilitating espionage activities. Additionally, Vitalik Buterin, co-founder of Ethereum, has proposed a pluralistic digital ID framework to maintain privacy in digital identification systems. He warned that rigid identification models could lead to increased surveillance, advocating for a decentralized approach to identity verification.

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