Catenaa, Sunday, February 02, 2025 – Brazil’s National Data Protection Authority (ANPD) has ordered the parent company of Worldcoin, Tools for Humanity (TFH), to stop offering cryptocurrency or financial incentives in exchange for biometric data.
The directive, effective Jan. 25, follows an investigation into the World ID project, which began operating in Brazil last November.
Worldcoin, co-founded by OpenAI CEO Sam Altman, uses iris-scanning technology to establish a global digital identity network.
The project incentivizes participation by rewarding users with cryptocurrency through a device called the “orb.”
However, the ANPD expressed concerns that financial rewards could compromise the validity of user consent under Brazilian law, which requires consent to be free and unequivocal.
The ANPD also highlighted risks associated with collecting irreversible biometric data, particularly for individuals in vulnerable situations.
The ruling echoes similar actions taken by Germany’s data protection authority, which demanded compliance with EU privacy regulations last year.
The controversy has impacted Worldcoin’s token, WLF, which has fallen 8% in the past 24 hours to below $2, marking an 83% decline from its March 2023 peak of $11.74.
Worldcoin has introduced measures to address privacy concerns, including initiatives like “Personal Custody,” giving users control over biometric data storage.
The company is also preparing to launch a Layer 2 network, World Chain, aimed at enhancing scalability and efficiency.
Despite challenges, the project continues to attract nearly 15 million users globally through its World App digital wallet.
In December Germany ordered Worldcoin to delete all collected data.
