Brazil bans Worldcoin from offering rewards for biometric data collection
Brazil bans World ID project over biometric data consent concerns.
Brazil’s National Data Protection Authority (ANPD) has issued an order for Tools for Humanity (TFH), the company behind the World ID project, to cease its services in Brazil starting January 25.
The enforcement action, announced on January 24, comes after an investigation into the project’s practices regarding the collection of biometric data, reports Cointelegraph.
The World ID project, formerly known as Worldcoin, compensates participants with cryptocurrency in exchange for their biometric data. However, the ANPD determined that offering financial incentives undermines the validity of users’ consent, particularly in vulnerable communities.
Concerns Over Biometric Data Collection and Consent
Co-founded in 2019 by OpenAI CEO Sam Altman, the World Network leverages iris biometrics, captured using a futuristic device called the “orb,” to create a universal digital identity system. Despite its innovative aims, the ANPD raised concerns about the sensitive nature of biometric data, the irreversible nature of data collection, and the inability to delete biometric information once captured.
Under Brazilian law, consent for processing sensitive personal data must be voluntary, informed, and specifically granted for a particular purpose. The ANPD argued that the financial incentives provided by World ID could influence participants’ decision-making, especially among individuals in economically vulnerable situations, potentially invalidating their consent.
The ANPD’s decision mirrors global regulatory scrutiny. In December 2024, Germany’s data protection authority also imposed corrective measures on the World Network, citing non-compliance with the European Union’s General Data Protection Regulations (GDPR).
Impact on the World Network and Its Native Token
The ANPD’s enforcement has affected the World Network’s operations in Brazil, a key market for its growth. The project’s native token, WLF, has reacted to the news with an 8% drop over the past 24 hours, falling below $2 at the time of writing. Since its launch in July 2023, the token has experienced an 83% decline from its all-time high of $11.74 in March, according to CoinGecko.
As regulatory concerns mount globally, World Network faces increasing pressure to address data protection issues while continuing its ambitious vision of creating a universal digital identity system. The ANPD’s actions serve as a stark reminder of the importance of balancing innovation with robust privacy safeguards.
Recently we wrote, that on January 21, the Worldcoin identification crypto project, led by OpenAI's Sam Altman, surged from $1.90 to an intraday high of $2.30, briefly topping the list of the most profitable coins among the top 200 cryptocurrencies by market capitalization.
