Government suspends Worldcoin payments and iris collection in Brazil
The National Data Protection Authority (ANPD) has made a decision that directly impacts the operations of worldcoin (WLD) in Brazil: the suspension of the offer of cryptocurrencies or any other financial compensation in exchange for the collection of biometric data, specifically iris scanning. Worldcoin, a project that seeks to create a global digital identity through iris scanning, had been offering rewards in its cryptocurrency, WLD, to people who submitted to data collection, raising concerns about the privacy and data protection of Brazilian citizens.
“The National Data Protection Authority (ANPD) has decided to apply a preventive measure to the company Tools for Humanity – TFH to suspend the offer of cryptocurrency or any other financial compensation for the collection of irises of data subjects in Brazil. Likewise, it has determined that TFH indicate on its website the identification of the person responsible for processing personal data,” it said in note .
This means that, from now on, no Brazilian will be able to receive payments, including Worldcoin itself, in exchange for an iris scan. This decision by the ANPD is based on the General Data Protection Law (LGPD), which requires consent for the processing of sensitive personal data.
“In a preventive analysis, the General Coordination of Inspection understood that the granting of monetary compensation by the company, through the offer of cryptocurrencies, may harm the obtaining of consent from the holder of personal data. Under the terms of the LGPD, consent for the processing of sensitive personal data, such as biometric data, must be free, informed, unequivocal and provided in a specific and highlighted manner, for specific purposes”.
The offer of financial rewards could, in the ANPD's assessment, unduly influence the consent of data subjects, compromising freedom of choice. “In its analysis, the CGF understood that the monetary consideration offered by the company could interfere with the free expression of will of individuals, by influencing the decision regarding the provision of their biometric data, especially in cases in which potential vulnerability and insufficiency make the weight of the payment offered even greater”.
In addition to suspending payments, the ANPD also ordered the company TFH to include on its website the identification of the person responsible for processing personal data. This measure aims to ensure greater transparency and make it easier for data subjects to contact the company in case of questions or requests.
In November 2024, the ANPD initiated an inspection process to analyze the processing of biometric data for the purpose of creating the so-called World ID. According to the company, the World ID would allow proof that the holder is a unique living human being and would promote greater digital security in the context of the expansion of artificial intelligence tools.
It is worth remembering that, this week, the Worldcoin (WLD) token presented an impressive surge after President Donald Trump unveiled the “Stargate Project,” an initiative aimed at investing in artificial intelligence (AI) infrastructure. The proposal calls for a total of US$500 billion to be invested over four years, with support from industry giants including OpenAI, SoftBank and Oracle, as well as strategic partnerships with Microsoft and Nvidia.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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