"Brazil Halts Worldcoin's Pay-for-Data Model Over Ethical Concerns"

Brazil's data protection watchdog, the Autoridade Nacional de Proteção de Dados (ANPD), has blocked Worldcoin's pay-for-data model over ethical concerns. The ANPD believes that offering financial compensation, such as Worldcoin's native ecosystem token (WLD), may unduly influence individuals, particularly those in vulnerable circumstances, compromising the validity of consent.

World Network, co-founded in 2019 by OpenAI CEO Sam Altman and developed by Tools for Humanity, aims to create a universal digital identity and financial system. The project verifies individuals as unique human beings through iris scans conducted with its proprietary "Orb" technology. However, the ANPD has banned Tools for Humanity from offering such compensation for biometric data collection in accordance with Brazil's data protection laws.

Brazil's data protection laws require consent to be free, informed, unequivocal, and explicitly given for specific purposes, especially when dealing with sensitive personal data like biometrics. The restrictions came into effect on Jan. 25, following an investigation initiated in November 2024, shortly after the project launched in Brazil.

Regulators have also raised concerns over how World Network handles user data, particularly the irreversible nature of biometric data collection. Despite the company's commitment to privacy and data security through measures like data minimization, user control over data, iris code deletion, and secure multi-party computation, it has faced regulatory pressures across the globe.

Last year, Hong Kong regulators raised similar concerns, calling out Worldcoin for contravening local privacy laws. The Office of the Privacy Commissioner for Personal Data called Worldcoin's data collection practices "unnecessary and excessive," noting a lack of transparency. As a result, World Network was asked to cease all operations in Hong Kong by the end of May 2024.

The project has faced similar restrictions in other regions, including Germany, Spain, and Kenya. However, it has continued to expand with the launch of the World Chain mainnet along with upgrades for its World App and Orb devices.