Brazil’s National Data Protection Authority (ANPD) has taken significant action by directing Tools for Humanity (TFH) to cease its practice of offering cryptocurrency or financial rewards in exchange for biometric data collection from Brazilian citizens. This order, effective from January 25, came on the heels of an investigation that commenced following the launch of the World ID initiative in November.
The ANPD expressed concerns that incentivizing individuals with cryptocurrency could undermine the legitimacy of user consent required for gathering sensitive biometric information. TFH, the organization behind the World Network project — formerly known as Worldcoin — was created in 2019 and co-founded by Sam Altman, the CEO of OpenAI. The project aims to establish a universal digital identity and financial system using iris scanning technology through a device described as an “orb.”
Under Brazilian regulations, obtaining consent for processing sensitive personal information must be voluntary, informed, unequivocal, and explicitly designated for specific purposes. The ANPD highlighted the risks associated with financial motivations potentially swaying users’ decisions, particularly for individuals in precarious circumstances. The authority also noted the sensitive nature of biometric data, the permanence of data collection, and the challenges in deleting biometric information once it has been gathered.
Previously, in December, Germany’s data protection agency mandated corrective actions from the World ID initiative concerning its biometric data practices, ensuring compliance with the European Union’s General Data Protection Regulations.
Following these developments, the value of World Network’s native token, WLF, has seen a significant decline, dropping over 8% in the past 24 hours and falling below $2. The token, launched in July 2023 to facilitate transactions within the network, has experienced a staggering 83% decrease from its peak of $11.74 achieved in March.
