Brazil's data protection authority has directed Sam Altman's World, formerly Worldcoin, to cease offering cryptocurrency or financial rewards for collecting biometric data from its citizens.This directive, issued on January 24, 2025, comes after an investigation launched in November 2024, following the debut of the World ID project in Brazil. 

What is World Network and Its Biometric Data Collection Model?

World Network, formerly known as Worldcoin, is a project co-founded by Sam Altman, CEO of OpenAI, and developed by Tools for Humanity. The initiative aims to build a universal digital identity and financial network by using iris biometrics to verify individuals. This process involves scanning people's irises with a device known as the “Orb,” which is designed to create a secure and verifiable digital identity for users.

The project was launched with the promise of offering crypto rewards in exchange for biometric data, such as iris scans. The goal is to ensure equitable access to financial services and digital identity in a world increasingly driven by artificial intelligence. However, Brazil’s regulators have raised concerns about this approach, particularly its reliance on financial incentives as a means of securing 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 that offering crypto payouts as compensation for biometric data may compromise the validity of the consent obtained from participants.

The agency’s concerns center on the idea 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, with concerns over 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 reportedly denied any wrongdoing. The company has reiterated its commitment to adhering to Brazilian data protection laws and criticized what it describes as misinformation spread about the project on social media.

The organization emphasized that its intentions in Brazil are genuine and expressed its desire to continue offering its services to the Brazilian population. Tools for Humanity plans to engage with the Brazilian data protection agency, hoping to convince them of the project's significance and commitment to privacy standards. 

The company also pointed to its measures for safeguarding user data, such as data minimization and user control over their personal information, including iris code deletion.