Brazil's data protection authority has directed World Network, formerly known as Worldcoin, to cease collecting biometric data from its citizens in exchange for cryptocurrency. This decision follows an investigation launched in November 2024.
What is World Network and Its Biometric Data Collection Model?
World Network, formerly Worldcoin, is a project co-founded by Sam Altman, CEO of OpenAI, and developed by Tools for Humanity. Its goal is to establish a universal digital identification and financial network by using biometrics through iris scans. The process involves scanning irises with a device called the "Orb," designed to create a secure and verifiable digital identity for users. The project offered crypto rewards for biometric data, like iris scans, aiming to ensure equitable access to financial services and digital identity in an AI-driven world. However, Brazil’s regulators voiced concerns, particularly regarding the use of financial incentives to obtain user consent.
The Issue of Consent: Brazil’s Data Protection Laws
Under Brazil’s stringent data protection laws, which are similar to the EU's GDPR, consent for processing sensitive personal data must be free, informed, unequivocal, and given explicitly for specific purposes. The ANPD believes offering crypto payouts as compensation for biometric data may compromise the validity of the consent obtained. The agency’s concerns focus on the possibility that financial incentives could unduly influence individuals’ decisions, particularly those in vulnerable situations, leading to consent that isn’t entirely voluntary or informed. Furthermore, Brazil’s regulators highlighted the irreversible nature of biometric data collection and expressed concerns about how this sensitive information is stored and used.
Tools for Humanity Responds to the Allegations
In response to Brazil's order, Tools for Humanity has denied any wrongdoing. The company reaffirmed its commitment to complying with Brazilian data protection laws, criticizing what it called misinformation spread about the project through social media. The organization emphasized that its intentions in Brazil are genuine and expressed a desire to continue offering services to the Brazilian population. Tools for Humanity aims to engage with the Brazilian data protection agency, hoping to convince them of the project’s importance and commitment to privacy standards. The company also highlighted its measures for protecting user data, such as data minimization and user control over their personal information, including iris code deletion. Quote from World: "World is compliant with all laws and regulations in Brazil. Recent inaccurate reports and social media activity has resulted in the ANPD having false information. We are in contact with the ANPD and are confident we can work with them to ensure the continued ability of all Brazilians to fully participate in the World network. We are committed to continuing to offer this important service to all Brazilians."
As a result of the decision by Brazilian authorities, World Network must reevaluate its approach to biometric data collection. Tools for Humanity intends to continue working on the project while seeking ways to comply with regulatory requirements.
