Brazil Bans World ID from Offering Crypto for Biometric Data

Brazil’s National Data Protection Authority (ANPD) has intervened in the controversial World ID project, instructing Tools for Humanity (TFH) to halt offering cryptocurrency or financial rewards in exchange for biometric data from Brazilian citizens. 

The decision took effect on January 24 as a result of an investigation which began in November following the Brazilian launch of the project. The ANPD’s enforcement division concluded that crypto payments risked invalidating consent to collect sensitive biometric data.

The World Network platform under its former name Worldcoin operates under OpenAI CEO Sam Altman’s Tools for Humanity to build a worldwide digital identity system and financial network through its advanced iris biometric technology.

The ANPD voiced opposition to the project because financial incentives might manipulate choices made by vulnerable populations through data collection methods containing enduring and private elements that could potentially violate individual rights. 

Brazilian laws require that data processing consent must be free, fully disclosed and clearly defined. The German data protection authority enforced corrective measures against the project in December because it failed to follow EU data protection standards while requiring strict data management practices.

WLD token has suffered a major price drop of more than 9% during the last 24 hours reaching a value below $2. The network’s native token WLD started trading in July 2023 with a current market value more than 80% below its peak value from March 2024 due to marketplace fluctuations together with legal barriers.

The ANPD’s decision demonstrates increased worldwide scrutiny regarding the ethical aspects of biometric data usage combined with financial rewards while featuring an ongoing discussion about consent and privacy issues in digital identity projects.