Brazil cracks down on World Network over privacy violations and crypto payments

Brazil cracks down on World Network over privacy violations and crypto payments
Brazil cracks down on World Network

​The Brazilian National Data Protection Authority (ANPD) has reaffirmed its ban on the use of cryptocurrency payments by WorldCoin in exchange for biometric data, signaling a firm stance on privacy rights amid growing concern over the project’s practices.

WorldCoin, a project founded by Tools for Humanity (TFH), seeks to create a global digital identity, or "World ID," through iris scans. In return, participants are compensated with the platform’s native cryptocurrency, WLD. 

Since launching operations in Brazil, the initiative has faced scrutiny from regulators, civil society groups, and data protection experts, according to Livecoins.

The latest ANPD decision, published March 25 in Brazil’s Official Gazette, denies TFH’s request to overturn previous preventive measures. According to the agency, WorldCoin’s data collection practices lack transparency, fail to meet legal consent standards, and violate the Brazilian General Data Protection Law (LGPD).

Crypto incentives trigger privacy red flags

At the center of the dispute is the financial compensation model. By offering cryptocurrency in exchange for sensitive biometric data, the ANPD argues, WorldCoin creates a transactional dynamic that undermines the voluntary nature of consent—especially in vulnerable populations. Attempts by TFH to justify the practice by switching its legal basis to user consent were deemed insufficient.

The ANPD also upheld the imposition of a R$ 50,000 (approx. $10,000 USD) daily fine for non-compliance. The suspension remains in full effect, and any resumption of data collection activities linked to crypto payments may trigger enforcement actions.

The ruling underscores Brazil’s commitment to robust data protection standards and places WorldCoin at a crossroads in one of its key emerging markets. TFH has not yet issued a public response to the decision.

Meanwhile, Brazil has solidified its status as a global leader in crypto, with 26 million citizens—12% of the population—owning digital assets. This ranks the country sixth worldwide in crypto adoption, highlighting its growing impact in the sector.

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