WorldCoin (WLD)

Brazil Bans Worldcoin’s Crypto Incentives for Eye Scans Over Data Privacy Concerns

Brazil’s National Data Protection Authority (ANPD) has ordered Tools for Humanity (TFH) to cease offering financial incentives, including cryptocurrency, in exchange for biometric data from its citizens. This directive, issued on January 24, directly affects the World ID project, previously known as Worldcoin, which is co-founded by OpenAI CEO Sam Altman.

The ANPD’s decision follows an investigation launched in November 2024, prompted by the debut of the World ID project in Brazil. World ID utilizes iris scans collected by TFH’s “orb” technology to create a universal digital identity and financial network. However, the ANPD raised concerns over the potential for crypto compensation to undermine the validity of consent for processing sensitive biometric data.

Under Brazilian law, consent for handling personal data must be voluntary, informed, and specific to the intended purpose. The ANPD expressed particular concern that financial incentives could pressure individuals, particularly those in vulnerable situations, into giving consent without fully understanding the implications. Additionally, the authority highlighted the irreversible nature of biometric data collection and the inability to delete it once it is stored.

This ruling is part of a broader international scrutiny surrounding World ID’s data practices. In December 2024, Germany’s data protection authority imposed corrective measures on the project, citing its non-compliance with the EU’s General Data Protection Regulations (GDPR).

Meanwhile, World Network’s native token, WLF, has faced a sharp decline. The token dropped more than 8% in the past 24 hours, dipping below $2, marking an 83% drop from its March 2024 peak of $11.74, according to CoinGecko. This decline in token value adds further challenges for the World ID project, as it navigates the regulatory hurdles surrounding its innovative yet controversial biometric data collection efforts.

Brazil, Idenity, Worldcoin, Biometric Security
WLD price since launch. Source: CoinGecko

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

Also Read: Worldcoin (WLD) Price Could Surge 5X After Elon Musk’s Criticism of Stargate AI Deal

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