Regulators in Brazil have barred decentralized identity solution developer World Network from offering crypto incentives to locals in exchange for biometric data. According to a recent announcement from Autoridade Nacional de Proteção de Dados (ANPD), the country’s data protection watchdog, World Network (formerly known as Worldcoin) violated local consent laws by using financial rewards to encourage signups for its World ID, which requires users to scan their irises utilizing the firm’s proprietary devices dubbed Orbs . Founded in 2019 by Open AI CEO Sam Altman, World Network plans to enhance data privacy measures by creating a universal digital identity system. According to the Worldcoin whitepaper, the World ID enables individuals to prove they are real, unique humans to any platform integrating with the protocol. The project’s Worldcoin token serves as both an incentive for users and a means to facilitate global transactions, with the broader goal of enabling equitable access to financial services and supporting identity verification in an increasingly AI-driven world. However, San Fransisco-based Tools for Humanity, which supports the development of the World Network, has come under fire for its data collection practices ever since Worldcoin’s debut. Brazillian regulators were the latest to enforce restrictions against the company just months after it launched in the country in November of 2024. The ANPD stresses that Brazilian regulations require consent for acquiring sensitive data to be free, informed, unequivocal, and explicitly given for specific purposes. The use of financial incentives, such as the Worldcoin token, was deemed to undermine the free will of individuals, particularly under financial stress, thereby violating these consent requirements. Authorities were also concerned about the irreversible nature of the process, notably the fact that biometric data, once collected, cannot be deleted, and consent cannot be effectively revoked. While World Network will remain operational in Brazil, Tools for Humanity will be required to stop offering cryptocurrency or any other financial compensation when collecting iris data, effective January 25. At press time, WLD had dropped roughly 12% in the past 24 hours. World network under scrutiny On August 2, 2023, the Ministry of the Interior and National Administration in Kenya became the first regulatory agency that blocked the project’s operations amidst ongoing investigations. Authorities cited concerns over the legality and authenticity of Worldcoin’s biometrics data collection. The following year, in March, Spanish regulators suspended the project’s data collection process due to the risks it poses for locals, especially minors, from potential privacy invasions. Months later, Hong Kong’s privacy regulator concluded that World Network’s data collection practices lacked transparency, while its requirement to retain user data for up to ten years was deemed excessive. Subsequently, an enforcement notice was issued that mandated the suspension of all operations. The project is also under investigation in South Korea and India, among other nations. World ecosystem continues to expand Despite the regulatory hiccups, 2024 marked a year of growth for the project as it continued to expand operations across the globe. The project launched World ID in Guatemala, Malaysia, Poland, Argentina, Chile, Austria, Mexico, and the United States. Further, the project rebranded to World, launched the World Chain mainnet, upgraded its Orb devices by leveraging new hardware from Nvidia, and introduced news updates to the World App. In late November 2024, the project unveiled World ID Passport credentials, which allow users to link NFC-enabled passports to their World ID without having to share personal information with third parties. The post Brazil cracks down on Worldcoin over biometric data consent violations: here's what we know appeared first on Invezz
