Cryptocurrency Regulations: Brazilian Regulators Crack Down on World Network’s Biometric Data Collection Practices

Regulatory Concerns Over Consent and Data Protection

Brazil’s data protection watchdog, Autoridade Nacional de Proteção de Dados (ANPD), has raised concerns over World Network’s practice of offering financial incentives for collecting biometric data. The regulator believes that this approach compromises the validity of consent, particularly for individuals in vulnerable circumstances.

World Network, formerly known as Worldcoin, aims to create a universal digital identity and financial system by verifying individuals as unique human beings through iris scans. However, the ANPD has banned Tools for Humanity, the company behind World Network, from offering financial compensation for biometric data collection in accordance with Brazil’s data protection laws.

Key Concerns and Restrictions

The ANPD’s investigation found that World Network’s approach to obtaining consent through financial incentives is problematic. The regulator has raised concerns over how the project handles user data, particularly the irreversible nature of biometric data collection.

Some of the key concerns and restrictions include:

  • Consent must be free, informed, unequivocal, and explicitly given for specific purposes.
  • Financial incentives may unduly influence individuals, particularly those in vulnerable circumstances.
  • Biometric data collection is considered sensitive personal data and requires special protection.

Global Regulatory Pressures

World Network has faced similar regulatory pressures across the globe. In Hong Kong, regulators raised concerns over the project’s data collection practices, calling them “unnecessary and excessive.” The project was also criticized for lacking transparency and failing to provide adequate privacy notices and consent forms.

Other regions, including Germany, Spain, and Kenya, have also imposed restrictions on World Network’s operations. Despite these challenges, the project has continued to expand its offerings with the launch of the World Chain mainnet and upgrades for its World App and Orb devices.

“The restrictions came into effect on Jan. 25, following an investigation initiated in November 2024, shortly after the project launched in Brazil.”

Regulators are increasingly scrutinizing cryptocurrency and blockchain projects that handle sensitive personal data. As the use of biometric data collection becomes more widespread, it’s essential for projects to prioritize transparency, data security, and user consent.

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