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Brazil Bans Crypto Rewards for Iris Scans as World Network Faces Regulatory Hurdle

Brazil Blocks Crypto Rewards for Iris Scans

  • Brazil‘s data protection agency ANPD halts World Network’s crypto incentives for iris scans.
  • The suspension takes effect from January 25, 2024.
  • Regulators determined crypto rewards could compromise user consent validity.
  • Tools for Humanity must cease offering financial compensation for biometric data collection.
  • The investigation began following World ID’s Brazil launch in November 2023.

Brazil Blocks Crypto Rewards for Iris Scans

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Brazil’s National Data Protection Authority (ANPD) has prohibited Tools for Humanity (TFH) from offering cryptocurrency incentives in exchange for iris scans, affecting the company’s digital identity verification system known as World Network.

Regulatory Intervention

The ANPD issued a directive on January 24, 2024, mandating an immediate halt to the practice of compensating Brazilian citizens with cryptocurrencies for their biometric data. The regulatory body’s enforcement division concluded that financial incentives could potentially invalidate user consent in the data collection process.

Project Background

World Network, previously operating as Worldcoin, introduced its services in Brazil during November 2023. The project utilizes specialized orbs for iris scanning to create unique digital identities, aiming to distinguish between human users and Artificial Intelligence systems.

Biometric Data Protection

The ANPD’s decision reflects growing concerns about the commercialization of personal biometric information. This regulatory action aligns with similar protective measures implemented in other jurisdictions, where authorities have scrutinized the collection and storage of sensitive biological data.

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The suspension specifically targets the financial incentive structure while authorities evaluate the broader implications of biometric data collection practices in the digital identity verification sector.

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