Brazil Bans Worldcoin from Providing Crypto or Financial Incentives for Biometric Data

Brazil’s National Data Protection Authority (ANPD) has ordered Tools for Humanity (TFH), the company behind Worldcoin’s biometric data collection, to cease offering crypto or financial incentives in exchange for biometric data.

The directive, effective January 25, follows an investigation launched in November after Worldcoin’s World ID project began operating in Brazil.

The ANPD ruled that compensating users with crypto could undermine the validity of their consent. Under Brazilian law, consent for processing sensitive data must be free, informed, and unequivocal.

The project offers financial rewards, including cryptocurrency, to users who participate in its biometric data collection through a device called the “orb.”

Worldcoin Offers Financial Rewards in Return for Biometric Data

In December, Germany’s data protection authority imposed corrective measures on Worldcoin, requiring compliance with the EU’s General Data Protection Regulations due to its handling of biometric data. The token, introduced in July 2023 to support the network, has seen a sharp decline of 83% from its all-time high of $11.74 in March, according to CoinGecko.

The watchdog expressed particular concern over the influence of financial incentives on individuals in vulnerable situations and the irreversible nature of biometric data collection, noting that once collected, such data cannot be deleted.

Through initiatives like “Personal Custody,” the project has reinforced its commitment to safeguarding users’ biometric data, allowing individuals greater control over the storage and deletion of sensitive information.

Worldcoin has taken proactive steps to address data privacy concerns.

Worldcoin Takes Measures to Address Privacy Concerns

With a developer preview already released, World Chain empowers developers to test and provide feedback on the network before its anticipated mainnet launch later this summer. The network’s architecture, based on Ethereum within the Superchain framework, is designed to be permissionless, open source, and community-governed.

Looking ahead, Worldcoin’s upcoming Layer 2 network, World Chain, is poised to usher in a new era of scalability and efficiency for the project.