Worldcoin's Eye Scan Ban Upheld in Brazil

Brazil's data regulator, the National Data Protection Authority (ANPD), has upheld its ban on Worldcoin, a controversial project that rewards users with cryptocurrency for having their eyes scanned. The regulator denied Worldcoin's appeal, citing concerns over consumer influence and data privacy.

Worldcoin, now known as the World project, had requested a 45-day extension to modify its app and halt financial compensation. However, the ANPD argued that Worldcoin could simply postpone iris scans until the necessary changes were made. The project, co-founded by OpenAI CEO Sam Altman, has been given 10 business days to confirm the suspension of crypto payouts.

In a statement, Worldcoin expressed respect for the ANPD's decision and stated that its locations in Brazil will remain open to provide education and information to the public. The project apologized to consumers who wished to join the program but emphasized its commitment to complying with laws in the markets where it operates.

The initiative, which aims to verify users as real humans and not bots, has faced backlash from governments globally. In Brazil, the ANPD ordered a clampdown last month, fearing that financial incentives may influence consumer behavior. The regulator's guidelines state that consent to process biometric data must be free, informed, and unequivocal. Concerns were also raised that sensitive information collected from the public could not be deleted later, with consumers unable to revoke consent.

Meanwhile, in the European Union, concerns have been raised that the project may fall afoul of the trading bloc's data protection laws. Worldcoin (WLD) had seen its value surge after Donald Trump unveiled a $500 billion investment into AI infrastructure that involved OpenAI. However, CoinGecko data shows that this euphoria was short-lived, with WLD plunging by 36.8% over the past 30 days and 52% since this time last year.