Brazil Bans Worldcoin Crypto Rewards Over Biometric Data Privacy Concerns
The ANPD's order restricts World Network from offering crypto rewards for biometric data collection, citing privacy and consent issues.
By Tylt Editorial Team
Brazil’s data protection watchdog bans crypto rewards for biometric data collection by World Network.
Concerns arise over user consent and handling of sensitive iris biometrics.
Worldcoin’s token, WLF, drops over 8%, reflecting market uncertainty.
Brazil's National Data Protection Authority (ANPD) has issued a decisive ban on the World Network, previously known as Worldcoin, from offering cryptocurrency rewards in exchange for biometric data collection. The move comes as part of an investigation that began in November 2023, shortly after the launch of the World ID project in Brazil.
The ANPD expressed concerns that financial incentives, such as cryptocurrency, could compromise the validity of user consent when collecting sensitive biometric data. Brazilian law mandates that consent for processing personal data must be free, informed, and unequivocal. The use of crypto rewards raised concerns about potentially exploiting vulnerable individuals who might feel pressured to participate.
World Network, co-founded in 2019 by OpenAI CEO Sam Altman, utilizes advanced iris biometric technology through Tools for Humanity. The project aims to establish a universal digital identity by scanning people’s irises with a high-tech "orb." However, Brazilian authorities highlighted the irreversible nature of biometric data collection and the lack of options to delete this sensitive data once it is stored.
The scrutiny over World Network is not unique to Brazil. In December 2023, Germany’s data protection authority imposed corrective measures on the project for non-compliance with the EU’s General Data Protection Regulations (GDPR). These ongoing challenges highlight global apprehensions about the handling of biometric data.
The announcement also impacted the project’s native token, WLF, which dropped over 8% in value, falling below $2. The token, launched in July 2023, has seen significant volatility, declining 83% from its all-time high of $11.74 in March. This market reaction reflects growing skepticism about the project’s future amid increasing regulatory scrutiny.
As data privacy concerns mount worldwide, Brazil’s actions underscore the importance of ethical and transparent practices in collecting and managing sensitive information. For World Network, adapting to stricter regulations will be crucial in maintaining its global ambitions.
