Brazil Halts Biometric Data Collection For Crypto Compensation

According to Cointelegraph, Brazil's National Data Protection Authority (ANPD) has mandated that Tools for Humanity (TFH), the company behind the World ID project's biometric technology, cease offering cryptocurrency or financial incentives for collecting biometric data from Brazilian citizens. This directive, effective from January 25, follows an investigation initiated in November after the World ID project's launch in Brazil. The ANPD's enforcement division concluded that providing cryptocurrency as compensation could undermine the validity of user consent when collecting sensitive biometric data. World Network, co-founded in 2019 by OpenAI CEO Sam Altman, utilizes iris biometrics developed by Tools for Humanity, based in San Francisco and Berlin, to create a universal digital identity and financial network through iris scanning technology. Brazilian law stipulates that consent for processing sensitive personal data must be freely given, informed, unequivocal, and specifically for designated purposes. The ANPD expressed concerns that financial incentives might unduly influence individuals' decision-making, particularly those in vulnerable situations. Additionally, the authority highlighted the sensitive nature of biometric data, the irreversible nature of its collection, and the inability to delete such data once collected. In a related development, Germany's data protection authority, BayLDA, issued corrective measures in December for the digital identity project, requiring World Network to comply with the EU's General Data Protection Regulations regarding biometric data handling. The native token of the World Network, WLF, has experienced a decline of over 8% in the past 24 hours, falling below $2. Since its launch in July 2023, the token has decreased by 83% from its all-time high of $11.74 in March, as reported by CoinGecko.