The National Data Protection Authority of Brazil has ordered the halt of offering crypto rewards for biometric data.
Issues with World Network Project
The Brazilian regulator temporarily banned the Worldcoin project, which was offering cryptocurrency in exchange for biometric data such as eye scans. This decision stems from concerns that users might give consent under pressure, and with the irreversible nature of biometric data, it poses a privacy threat.
World Network User Statistics
As of January 2025, the World Network project reached 22.7 million users, out of which 10.6 million were verified. The platform rapidly gained popularity due to its innovative biometric technology.
Market Impact
Following the Brazilian regulator's decision, the World Network token WLF sharply declined by more than 8% in 24 hours. Since its launch in July 2023, it has decreased by 83% from its March 2024 high.
Regulatory concerns over the use of biometric data are causing significant market shifts, prompting companies to adapt their data protection approaches.
