Brazil Halts World ID Project Over Privacy and Consent Issues

• Brazil’s ANPD halts Worldcoin operations, citing issues with biometric data collection.
• ANPD flags crypto rewards for biometrics as a breach of Brazil’s consent regulations.
• Worldcoin faces increasing global scrutiny over privacy, ethics, and user data protection.

Brazil’s National Data Protection Authority (ANPD) has ordered Tools for Humanity (TFH), the company behind the iris-scanning World ID project, to cease data collection. According to a report, all operations must be halted in Brazil from January 25 onward. This decision stems from the issue of collecting biometrics and the influence of financial incentives on consent.

Consent Law Violations

The investigation started in November 2024, immediately after the launch of the World ID project in Brazil. The ANPD noted that accepting cryptocurrency as a reward for providing biometric information was an approval-based concern. In Brazil, there are legal requirements for consent, including the following: consent must be free, informed, specific, and unambiguous for sensitive data processing.

Worldcoin has morphed into the World Network and uses iris recognition to deliver a universal identification system. Established at the tail-end of 2019 by OpenAI CEO Sam Altman, the application uses the ‘orb,’ which authenticates the user through their iris and provides them with a digital identity.

The ANPD expressed moral concerns because biometric data is considered sensitive. Once captured, biometric data cannot be erased, so its use is permanent. Also, the agency pointed out that providing monetary incentives may pose undue harm to certain groups, thus eroding the principle of informed consent.

Impact on World Network

Brazil’s action is part of a growing trend against the World ID project. In December, Germany’s data protection authority demanded that Worldcoin undertake rectification in relation to the GDPR. These measures are indicative of the increasing international concern with regard to data protection and privacy.

Related: WLD’s Cup Handle Pattern Teases a $7 Breakout This Bull Run

The native token of the Worldcoin network, launched in July 2023 to support the network, has also fallen. The token dropped by over 11.7% and is, as of press time, trading at $1.83 and has a market capitalization of $1.78B. 

Worldcoin’s dream of creating a global digital identity is now at risk. Privacy and consent issues remain the project’s greatest regulatory concern in Brazil and Germany, which calls for the project to revisit its strategy. The solution to these problems would likely determine its future development.

The post Brazil Halts World ID Project Over Privacy and Consent Issues appeared first on Cryptotale.