- Brazil’s ANPD bans Worldcoin (WLD) crypto incentives for biometric data collection.
- Worldcoin’s native token, WLD, drops 11.30%, losing over 83% since March 2024.
Brazil has banned Worldcoin (WLD) from offering cryptocurrency or financial incentives in exchange for biometric data. The National Data Protection Authority (ANPD) enforced the directive on January 25, following a detailed investigation that started in November 2024.
The Brazilian DPA issued a temporary ban on Worldcoin's iris-scanning venture. pic.twitter.com/keYaZRgx98
— Luis Montezuma | @luismontezuma@mstdn.social (@montezumachavez) January 24, 2025
Worldcoin, co-founded by OpenAI CEO Sam Altman, uses iris-scanning technology to create digital identities. The platform compensates users with cryptocurrency for their participation through a device called the “Orb.” However, ANPD ruled that these incentives could compromise the validity of consent, violating Brazilian data protection laws.
Brazilian law mandates that consent for sensitive data collection must be free, informed, and unequivocal. The ANPD raised concerns about the irreversible nature of biometric data and its potential misuse. It also highlighted that financial incentives might exploit vulnerable populations, making their consent less authentic.
Global Fallout and Privacy Concerns
Worldcoin’s native token, WLD, faced immediate fallout. The token dropped over 11.30% within 24 hours, slipping below $1.85. Since its launch in July 2023, WLD has plummeted 83% from its all-time high of $11.74 in March 2024, according to Coinmarketcap.
Similar regulatory actions have affected Worldcoin in other countries. In December, Germany imposed corrective measures due to the platform’s non-compliance with the EU’s General Data Protection Regulations. Hong Kong and Kenya have also halted its operations over similar privacy concerns.
Worldcoin has attempted to address these challenges. It introduced privacy-focused initiatives like “Personal Custody,” allowing users greater control over their biometric data. Despite this, global regulators remain wary of the project’s ethical and legal implications.
The ANPD’s decision emphasizes the growing global focus on data privacy. It also underscores the challenges of balancing innovation with safeguarding individual rights. Brazil’s move signals stricter oversight of biometric data practices, setting a precedent for future regulations.
Highlighted Crypto News Today
Russia’s Rosseti Energizes Crypto Mining With Idle Power Plan
