The National Data Protection Authority of Brazil has halted crypto payments for the collection of biometric data under the World ID project.
ANPD's Decision
On January 24, ANPD ordered Tools for Humanity to cease financial incentives for collecting biometric data in Brazil. The order takes effect on January 25 and follows an investigation initiated after the World ID project launched in November. Authorities are concerned that crypto compensation may compromise the voluntariness of data provision.
About World Network
Founded in 2019 by OpenAI CEO Sam Altman, World Network develops a digital identity system based on iris biometrics. Brazilian law requires that consent for data processing be free and informed, thus financial incentives bring its legality into question.
Similar International Measures
Similar measures were implemented in Germany, where BayLDA required the company to comply with European data processing standards. Regulatory news has led to WLF token value dropping by over 8%.
The halt in crypto rewards amid regulation indicates an increasingly stringent approach by authorities toward data protection and the influence of financial incentives on decision-making.
