Brazil’s National Data Protection Authority (ANDP) upheld its decision to limit cryptocurrency compensation in the World ID project due to significant privacy concerns.
ANDP's Decision
On March 25, the National Data Protection Authority of Brazil (ANDP) announced that it will not lift the ban on financial incentives for users who share biometric data for World ID. The project, which seeks to use iris imaging to assign identification numbers to users, has faced scrutiny over privacy issues. The agency emphasized that the financial compensation in Worldcoin (WLD) for any World ID generated using iris scans in Brazil must remain frozen.
Privacy and Consent Concerns
ANDP started investigating the World ID project in November 2024 because offering monetary rewards could influence users' decisions to share their biometric data. While the project aligns with the global trend towards creating digital identification solutions, Brazilian data protection agencies have expressed concern about the collection, storage, and usage of biometrics. ANDP also raised issues over the irreversibility of information collection, as users cannot delete their data once collected.
Cryptocurrency Regulation in Brazil
In addition to the World ID debate, Brazil is increasingly regulating stablecoins, a key sector of the cryptocurrency industry. The country's central bank recently discussed measures to limit stablecoins to non-custodial wallets to prevent money laundering and tax evasion. This proposal has alarmed industry players like Coinbase, who argue that these regulations could stifle innovation and drive businesses to less transparent jurisdictions.
Thus, Brazil continues to take strict measures to protect its citizens' personal data, while the world of digital IDs and cryptocurrencies faces new challenges and regulations.
