ANPD Suspends Worldcoin’s Biometric Collection, Citing Risks to At-Risk Groups

Worldcoin has been forced to halt its activities in Brazil due to an order from the National Data Protection Authority (ANPD) and findings from the Congressional Inquiry Commission (CPI da Íris). In January 2025, the ANPD instructed Worldcoin to stop providing cryptocurrency rewards in exchange for biometric data, arguing that monetary incentives could undermine the authenticity of user consent as required by Brazilian regulations Brazil bans Worldcoin from giving crypto for eye scans [ 1 ]. This action came after authorities looked into the World ID project, which relied on

scanning to build a digital identity platform and distributed WLD cryptocurrency tokens as payment. The ANPD stressed that gathering biometric information must be based on “voluntary, informed, and unambiguous consent,” and warned that offering money could unfairly sway at-risk groups Brazil Bans Worldcoin from Offering Incentives for Biometric Data [ 2 ].

During hearings for the CPI da Íris, a witness revealed that every

location in São Paulo had shut down by the beginning of 2025. Joaquim Lopes Alves, legal counsel for Tools for Humanity (TFH), confirmed that the company ceased Brazilian operations following the ANPD’s directive, resulting in staff layoffs and the end of rental contracts Worldcoin Reported 'Flouting Brazil Ban,' But Escapes ... - Benzinga [ 7 ]. The investigation also focused on TFH’s adherence to privacy laws, questioning whether WLD token payments were fair compensation or exploitative. Lawmakers voiced concerns about iris data potentially being misused for financial crimes or discrimination.

TFH, Worldcoin’s parent firm, claims it is complying with the ANPD’s verdict, though its initial reaction drew criticism. The company asked for an extra 45 days to update its app and phase out monetary incentives, but the ANPD declined this request Brazilian Regulator Denies Worldcoin Appeal to Lift … [ 3 ]. Regulators countered that operations could simply be stopped by halting new appointments. TFH now has ten business days to verify it has ended payments, or it could face regulatory penalties for failing to comply Brazilian authority rejects Worldcoin appeal enforcing service ban [ 4 ]. Despite these restrictions, reports indicate some São Paulo sites continued to operate into early 2025, still providing crypto rewards for iris scans Privacy concerns force Worldcoin to erase iris scan … [ 8 ]. The ANPD reiterated that ongoing violations would be considered aggravating circumstances in any future penalties Worldcoin Faces Legal Scrutiny and Ethical … [ 9 ].

This clampdown has affected Worldcoin’s market standing. Since its July 2023 launch, the WLD token has lost 83% of its value, falling from a March 2023 high of $11.74 to below $2 in early 2025 Brazil bans Worldcoin from giving crypto for eye scans [ 1 ]. The decline reflects increased international scrutiny, with authorities in Spain, Germany, and Portugal also demanding adherence to privacy laws or ordering data removal. Brazil’s regulatory response is part of a larger move to strengthen privacy safeguards, especially regarding new digital technologies.

Worldcoin’s approach has come under fire for encouraging data collection in vulnerable communities. Reports have found that unhoused individuals and those struggling with addiction in Berlin were targeted, with some groups earning as much as $685,000 in WLD. In Brazil, the CPI noted that TFH presented its work as “product development” instead of a humanitarian project, raising concerns about the actual motives for biometric data gathering.

The ANPD’s actions carry significance for digital identity initiatives worldwide. Brazil’s firm approach to privacy, together with similar regulatory steps in the EU, highlights the ongoing difficulty of balancing technological progress with ethical and legal responsibilities. Although Worldcoin has introduced measures like “Personal Custody” to let users control their data, skepticism remains. As it gets ready to roll out its Layer 2 World Chain network, Worldcoin must address these concerns to rebuild trust and support future growth Brazil Bans Worldcoin from Offering Incentives for Biometric Data [ 2 ].