Brazil prohibits Worldcoin from offering crypto for iris scans
Brazil's National Data Protection Authority (ANPD) has mandated that Tools for Humanity, the company behind the iris-scanning digital ID project formerly known as Worldcoin (CRYPTO:WLD), cease offering cryptocurrency incentives for biometric data collection.
This decision, effective January 25, follows an investigation initiated in November after the launch of the World ID project in Brazil.
The ANPD concluded that providing crypto compensation could undermine the validity of user consent when collecting sensitive biometric information.
The organisation emphasised that consent for processing personal data must be free and informed, without coercive financial incentives influencing individuals' decisions.
The project, co-founded by OpenAI CEO Sam Altman, aims to create a universal digital identity system through iris scans.
However, concerns were raised about the irreversible nature of biometric data collection and the potential inability to delete such data once provided.
The ANPD's ruling reflects a growing scrutiny of biometric data practices globally, as evidenced by similar actions taken by authorities in Germany and other countries.
In response to the ruling, Tools for Humanity stated it is working with the ANPD to ensure compliance and maintain participation in the World network.
Despite these assurances, the native token for the project, WLF, has seen a decline of over 8% in value recently, dropping below $2.
This decline represents an 83% decrease from its all-time high of $11.74 earlier this year.
At the time of reporting, the Worldcoin (WLD) price was $1.90.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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