Key Takeaways:
- Brazil’s data protection authority (ANPD) has banned World Network (formerly Worldcoin) from offering cryptocurrency rewards for biometric data, citing concerns about user consent.
- The ANPD emphasized risks related to financial incentives influencing consent, especially for vulnerable groups, and the permanence of biometric data collection.
- Similar concerns arose in Germany, where regulators demanded compliance adjustments to EU data protection laws.
Brazil’s National Data Protection Authority (ANPD) has prohibited World Network, formerly Worldcoin, from offering cryptocurrency rewards in exchange for biometric data.
This order, effective January 25, was issued to Tools for Humanity (TFH), the organization behind the project.
🇧🇷BRAZIL BLOCKS SAM ALTMAN’S CRYPTO-FOR-IRIS SCHEME
— Mario Nawfal (@MarioNawfal) January 27, 2025
Brazil’s data watchdog just slammed the brakes on Worldcoin, banning it from paying citizens in crypto for their biometric data.
Officials argued that financial incentives could pressure vulnerable people into giving up… pic.twitter.com/ljoVGhirgf
The decision follows an investigation into World ID, a program that scans individuals’ irises to create a universal digital identity and financial platform.
The ANPD expressed concerns that providing financial incentives for sensitive biometric data could compromise the validity of user consent, which under Brazilian law must be freely given, informed, specific, and unequivocal.
Founded in 2019 by OpenAI CEO Sam Altman, World Network’s biometric approach raises ethical and legal concerns.
The ANPD highlighted the potential exploitation of vulnerable individuals and emphasized the irreversible nature of biometric data collection, which cannot be erased once stored.
These issues prompted Brazil to halt TFH’s services in the country.
The project has faced scrutiny beyond Brazil, with Germany’s data protection authority also requiring adjustments to comply with the EU’s General Data Protection Regulations (GDPR) in December.
These actions underscore global concerns about privacy, consent, and the ethical implications of biometric data collection tied to financial incentives.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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