Brazil Halts Worldcoin’s Biometric Data Collection

• Brazil has banned Worldcoin from collecting biometric data in exchange for financial rewards.
• Authorities raised concerns about privacy risks and lack of compliance with local laws.
• The move underscores the country’s commitment to safeguarding citizens’ data rights.

The Brazilian government has officially banned Worldcoin, the digital identity and cryptocurrency project, from collecting biometric data in exchange for financial rewards. This decision comes amid growing concerns about privacy violations and regulatory compliance. Worldcoin, which scans users’ irises to verify their identities, offers cryptocurrency incentives to participants—a practice Brazil now deems unacceptable.

Privacy and Legal Compliance at the Forefront

Brazil’s National Data Protection Authority (ANPD) expressed serious concerns about the collection and use of biometric data by Worldcoin. The agency emphasized that such activities pose significant privacy risks, particularly when individuals are incentivized with financial compensation.

The ANPD stated that Worldcoin’s methods could violate the country’s General Data Protection Law (LGPD), which governs the collection and processing of personal data. By halting these activities, Brazil is reinforcing its commitment to safeguarding its citizens’ privacy and ensuring compliance with strict data protection laws.

Global Implications for Crypto Projects

Worldcoin’s setback in Brazil highlights the challenges cryptocurrency and tech companies face when operating in jurisdictions with stringent regulations. While the project promotes a vision of decentralized identity verification, critics argue that its reliance on sensitive biometric data opens doors to misuse and exploitation.

The ban sends a strong message to other crypto ventures about the importance of transparency, accountability, and adherence to local laws. It also reflects a broader trend of countries scrutinizing crypto projects more closely to protect their citizens.