Worldcoin Reportedly ‘Flouting Brazil Ban,’ But Escapes Habeas Corpus Trouble

Worldcoin (WLD) and its operator Tools for Humanity are reportedly continuing to operate in Brazil’s São Paulo despite a ban on giving citizens crypto in exchange for their biometric data .

However, the company appears to be safe from a Habeas Corpus lawsuit. The case raised “ethical” concerns at the nation’s supreme court.

Is Worldcoin ‘Flouting’ Brazil Ban?

G1 , the digital arm of the O Globo newspaper, has reported that Tools for Humanity appears not to be heeding a ruling from Brazil’s National Data Protection Authority (ANPD).

The ANPD ruling forbids Tools for Humanity from offering people crypto or financial incentives in exchange for their biometric data on Brazilian territory.

Worldcoin has enjoyed phenomenal success in LATAM. It currently operates almost exclusively in the São Paulo area.

But it has also been dogged by privacy and regulatory concerns. In addition to the Brazil ban, it has also faced investigations in Argentina and beyond .

It wrote that some Worldcoin centers in São Paulo “are still operating and promising crypto payments in exchange for biometric data.”

G1 said its reporters “visited three of Worldcoin’s 52 service points in São Paulo.” It said it “spoke to 12 people who had just signed up.”

These people reportedly confirmed that “the firm is continuing to promise to pay” coins for new “registrations.”

The outlet noted that the offices “were not very busy.” But it added that “service was continuing as normal” at the centers.

São Paulo Popularity

The media outlet quoted a Worldcoin employee “who did not wish to be identified” as saying that “there had been no guidance regarding payment suspension.”

The newspaper wrote that there are 52 Worlcoin centers in São Paulo. Several of these are “on the outskirts of the city.”

The media outlet wrote that Worlcoin told G1 it “continues to operate legally while working in partnership with ANPD to address its issues.”

However, the firm reportedly “did not respond” to questions about its intention to suspend making payments.

The ANPD has stated that “failure to comply” with its order “will be considered an aggravating circumstance in the context of any administrative sanctioning process.”

Habeas Corpus Case

Meanwhile, the Brazilian media outlet Livecoins reported that a man named Joaquim (surname withheld) petitioned the Superior Court of Justice (STJ) with a Habeas Corpus lawsuit.

Joaquim said he had launched his case “on behalf of 150,000” people in the country. He said all these people had scanned their irises in exchange for WLD payments.

In his petition, Joaquim asked for “a preliminary injunction” on behalf of “all Brazilians who had their biometric data collected by Worldcoin.”

He wrote that collecting iris scans was a “controversial practice.” He added that this was now “being used in various parts of the world, including Brazil.”

Joaquim alleged that using crypto as “remuneration” can “be seen as a form of coercion over consent, distorting the principle of freedom of choice of the holder.”

The petition also requested that the court order “the immediate suspension of data collection.” It also asked the court to “return all biometric data to Brazilians.”

If the data cannot be returned, the petition reads, the authorities “should order its destruction.”

However, the STJ’s minister and president Herman Benjamin said that the request was “not subject to the jurisdictional competence” of the court.

Brazil’s Superior Court of Justice. (Source: The Gentle [CC BY-SA 2.0])

Case Not Applicable: Lawyer

Livecoins also quoted the criminal lawyer Lucas Schirmer de Souza as explaining that Habeas Corpus laws are “not applicable in the case against Worldcoin.” The lawyer said:

“Habeas Corpus is a constitutional guarantee provided for in [the] Federal Constitution, as well as [the] Criminal Code. Its purpose is to protect the freedom of movement of a person who is suffering or is about to suffer violence or illegal coercion by authorities or third parties. It only applies in cases where there is an imminent illegal coercion of freedom of movement.”

Tools for Humanity was co-founded by the US tech entrepreneur and OpenAI CEO Sam Altman.

The company has also responded to the ANPD ruling, claiming it has not violated Brazilian law.