Brazil Halt to Worldcoin’s Biometric Data Collection Practices

Brazil Blocks Worldcoin’s Crypto Rewards for Biometric Data Collection

Tools for Humanity (TFH), known for its World ID project (formerly Worldcoin), has been ordered by Brazil’s Data Protection Authority (ANPD) to stop offering cryptocurrency or financial compensation for collecting and using biometric data from the country’s citizens. The investigation, which began in November 2024, was triggered by concerns over the security of biometric data and the potential for offering crypto as compensation to undermine user consent when collecting sensitive data, such as iris scans.

ANPD and Global Authorities Question World ID’s Data Practice

The ANPD (Brazil’s data protection authority) is saying that people should only agree to share their personal data if they truly understand what they are agreeing to, if they are not pressured or tricked into it, and if they know exactly why their data is being collected. They are worried that offering money or crypto in exchange for personal information might make people, especially those in difficult situations, feel like they have no choice but to share their data. This could lead to them not fully understanding or freely agreeing to the process.

Biometric data, like eye scans or fingerprints, is very personal and sensitive. Once it's collected, you can't erase it, which makes people worried about privacy. If that data gets misused or falls into the wrong hands, there's no way to remove it.

In December 2024, Germany's data protection authority told the project to make changes because it wasn't following the rules about protecting personal data in the European Union.
The WLF token, which is used in the World Network, has lost a lot of value. It dropped by 83% compared to its highest value in March 2024.

World ID’s Future at Risk Amid Privacy and Legal Challenges

The future of the World ID project could face challenges if privacy concerns and legal issues continue to grow. With authorities in Brazil and Germany already taking action, other countries might impose stricter regulations, slowing down its expansion. This could erode trust in the project, leading to less user participation and a continued decline in the value of its WLF token. If the project doesn't address these issues, it may struggle to regain credibility and comply with global data protection laws, impacting both its growth and financial stability.