Brazil Bans Worldcoin’s Crypto for Eye Scans

The country’s data protection watchdog, the National Data Protection Authority (ANPD), issued an order. The company must stop offering crypto rewards to Brazilians.

The decision, made on January 24, 2025, followed an investigation that began in November 2024. This investigation was prompted by the launch of the World ID project in Brazil.

Brazil Raises Concerns Over Worldcoin’s Eye Scan Incentives

Worldcoin, now known as World Network, was giving crypto rewards in exchange for biometric data from eye scans. However, Brazil has raised the red flag. They have concerns over the validity of user consent and the sensitive nature of biometric information.

The ANPD’s primary worry was that offering financial incentives, like crypto, could compromise the free and informed consent required by Brazilian law when collecting personal data. The watchdog pointed out that people, especially those in vulnerable situations, might feel pressured to give consent in exchange for digital currency. This raised alarms about the potential for manipulation, as well as the irreversible nature of collecting such personal data. Once biometric data like iris scans are taken, they cannot be deleted, leaving a significant privacy concern.

This move follows a similar crackdown in Europe. In December 2024, Germany’s data protection authority also issued corrective measures for Worldcoin, calling for changes to comply with the EU’s General Data Protection Regulations (GDPR). Authorities in both regions are tightening the reins on digital identity projects, especially when they involve sensitive data like biometrics.

World Network: 22.7M Users, 10.6M Verified in 18 Months

In just 18 months since its launch, World Network has made significant strides, verifying 10.6 million individuals while growing its user base to an impressive 22.7 million. The platform, which aims to revolutionize digital identity and financial networks through innovative biometric technology, has seen rapid adoption.

In the wake of Brazil’s decision, World Network’s native token, WLF, saw a sharp decline, dropping more than 8% in just 24 hours. The token, which launched in July 2023, has now fallen 83% from its March 2024 high, highlighting the market’s reaction to the growing regulatory pushback.

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