Worldcoin Faces Legal Hurdles in Brazil Over Data Collection

• Brazil’s data authority banned Worldcoin from paying citizens in crypto for biometric data collection.
• Proposed stablecoin rules may push users toward decentralized platforms and peer-to-peer transactions.

Brazil has taken a firm position against the tactics used by Tools for Humanity (TFH), the Worldcoin project’s developer. The Brazilian National Data Protection Authority (ANPD) has directed a stop to financial compensation, including in the form of crypto, given to citizens in exchange for iris scans, thus providing biometric data.

BRAZIL BLOCKS SAM ALTMAN’S CRYPTO-FOR-IRIS SCHEME

Brazil’s data watchdog just slammed the brakes on Worldcoin, banning it from paying citizens in crypto for their biometric data.

Officials argued that financial incentives could pressure vulnerable people into giving up… pic.twitter.com/ljoVGhirgf

— Mario Nawfal (@MarioNawfal) January 27, 2025

Worldcoin Faces Challenges Over Biometric Data Policies 

The ANPD argues that the incentives can influence people’s decisions and so compromise their autonomy in deciding whether or not to provide biometric data. Companies also have to be more open by explicitly declaring on their websites the people managing personal data.

Starting with TFH, the Worldcoin project uses iris scans as a means of identification to create a worldwide identity system whereby users obtain digital IDs and crypto. The project has also proved controversial over its biometric data-collecting techniques in other countries, including Spain and Portugal too.

TFH has said in Brazil that it complies with pertinent laws and guidelines; yet, the behavior of the ANPD begs more issues about possible privacy breaches and possible exploitation of personal data.

The more the company wants for global adoption, the more authorities all around seem to be worried about how the technology influences personal privacy rights.

As we have noted, privacy concerns generated criticism of Worldcoin also from the European Union. Following privacy guideline violations, the corporation was told at the time to delete iris scan data by January 19, 2025. Concurrently, Worldcoin is being obliged by the Bavarian watchdog and regulators in Spain to guarantee that its iris scan “Orb” project is totally GDPR compliant.

Meanwhile, as of the press time, WLD is swapped hands at about $1.84, down 12.94 over the last 24 hours. This shows that the above issues bring negative sentiment for the WLD token.

On the other hand, Brazil has proposed, in efforts to improve financial market regulation, a ban on stablecoin transfers to private custodial wallets, according to our prior report. With this control, users might be pushed to use peer-to-peer trading and decentralized platforms for stablecoin transactions.