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Brazil’s data protection authority reaffirmed its decision to block the financial rewards program of Worldcoin, the digital identity project backed by Sam Altman, citing ongoing concerns about privacy and consent tied to biometric data collection.
The National Data Protection Authority (ANPD) said it will keep in place the ban on offering crypto payments to users who submit iris scans for World ID verification. The ruling rejects a request from Worldcoin developer Tools For Humanity to reverse the suspension.
The agency warned that any attempt to restart data collection would trigger a daily fine of 50,000 reais (roughly $8,800).
Worldcoin’s World ID system uses iris scans to create a unique digital identity for online verification. In Brazil, the program launched late last year but was ordered to shut down in January after regulators raised concerns that offering crypto in exchange for sensitive data undermines users’ ability to give informed consent.
The blockchain behind World Chain runs on the OP Stack, with World transactions making up 44% of the activity on the OP Mainnet, making it the top app on the network. World Network’s “humans-only” community offers users lower gas fees and the chance to be involved in future governance decisions.
ANPD launched an investigation in November, citing the risks of tying financial incentives to biometric collection. While the company argued the system helps distinguish real users from bots and AI-generated profiles, Brazilian authorities were unconvinced.
Digital ID platforms are gaining traction globally as AI deepfakes, bots, and Sybil attacks flood social platforms and online services. But Worldcoin’s model — which relies on capturing biometric data —triggered backlash from privacy advocates and regulators in several countries.
In contrast, other projects are pushing forward with alternatives that don’t involve scanning faces or eyes. Billions Network, for example, recently rolled out a zero-knowledge proof-based identity platform that’s already being tested by major institutions like HSBC and Deutsche Bank.
For now, Brazil remains off-limits for Worldcoin’s reward-driven ID push. While the global arms race for secure digital identity continues, regulators are making clear that convenience can’t come at the expense of privacy.
Earlier in 2024, Worldcoin denied allegations that it allowed insiders to profit from movements of its token, citing its “zero tolerance” for such activities.
DeFi Squared alleged that Sam Altman’s project engaged in price manipulation of its Worldcoin (WLD) token. It suggested that someone from the team might have used insider information to buy the token before the project announced a delay to its native token unlock schedule.
