World Network’s Biometric Project Stumbles Under Brazil’s Data Laws
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Brazil’s National Data Protection Authority (ANPD) suspended Tools for Humanity’s operations in the country due to concerns over the influence of financial incentives on user consent. Additionally, Argentina is investigating alleged data-buying activities linked to the project. Meanwhile, Binance’s CZ recently advocated for blockchain-based government spending transparency, and Coinbase CEO Brian Armstrong pointed out the growing focus on crypto under US President Donald Trump’s administration. World ID Faces Regulatory Pushback Brazil’s National Data Protection Authority (ANPD) ordered Tools for Humanity (TFH), the company behind the biometrics used in the World ID project, to stop its services in the country. The decision became effective on Jan. 25, and followed an investigation that started in November after the launch of the World ID project in Brazil. The ANPD determined that offering cryptocurrency or financial rewards in exchange for sensitive biometric data could undermine the validity of user consent, which is a key requirement under Brazilian law for processing such data. Consent must be freely given, informed, and unequivocal. Biometric data collection World Network, which was previously known as Worldcoin, was co-founded in 2019 by OpenAI CEO Sam Altman. It uses iris-scanning technology developed by TFH to build a universal digital identity and financial network. However, the ANPD is very concerned about the influence of financial incentives on decision-making, particularly for vulnerable populations, and the irreversible nature of biometric data collection. Once submitted, this data cannot be deleted, which raises some serious privacy and ethical issues. This latest development in Brazil is similar to the regulatory scrutiny in other jurisdictions. In December, Germany’s data protection authority mandated corrective measures for the project to ensure compliance with the EU’s General Data Protection Regulations. These regulatory challenges only added to the difficulties faced by the project and its native token, WLD. WLD price action over…
Filed under: News - @ January 27, 2025 10:22 am