Worldcoin's Eye-Scanning Ban Upheld in Brazil

Brazil's data regulator, the National Data Protection Authority (ANPD), has rejected an appeal by Worldcoin to lift a ban on its operations in the country. The controversial project, which rewards users with cryptocurrency for having their eyes scanned, has faced criticism from governments worldwide due to concerns over consumer behavior manipulation and the inability to delete sensitive data.

Last month, ANPD ordered a clampdown on Worldcoin, arguing that consent to process biometric data must be "free, informed, and unequivocal." The regulator also raised concerns about the inability to revoke consent and delete collected data. Worldcoin, now known as the World project, sought a 45-day extension to make changes to its app and stop offering financial compensation, but this request was denied.

Regulators argued that Worldcoin could simply postpone appointments to scan irises until the necessary changes were made. The project, co-founded by OpenAI CEO Sam Altman, has been given 10 business days to officially confirm that crypto payouts have been suspended. In a statement, World said it "respects the ANPD's decision" and that its locations in Brazil will remain open to provide education and information to the public. The initiative aims to help consumers verify they are real humans and not bots by scanning their eyeballs to receive a "World ID."

Concerns have also been raised in the European Union that the project may fall afoul of the trading bloc's data protection laws. Worldcoin (WLD) saw 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.