Worldcoin’s World Network Banned in Brazil Over Privacy Violations

Brazil’s data protection agency, the ANPD, has taken decisive steps to halt the operations of World Network, previously known as Worldcoin, within the country.

The project, which involves collecting biometric data using eye scans in exchange for cryptocurrency rewards, has been ordered to cease services as of January 25. This action follows an investigation launched in November after the World ID initiative began operating in Brazil.

The ANPD raised concerns that offering financial incentives, such as crypto, could compromise individuals’ ability to provide genuine, uninfluenced consent for the collection of sensitive biometric data. Brazilian law requires that consent for such data be explicit, voluntary, and informed, with no undue pressure or enticement.

Launched in 2019 by OpenAI CEO Sam Altman, World Network aims to build a global digital identity platform through iris scanning technology. However, Brazilian regulators highlighted several risks, including the irreversible nature of biometric data collection and the potential exploitation of individuals in vulnerable situations.

This is not the first regulatory challenge for the project. In December, German authorities demanded compliance with EU data protection laws, raising similar concerns about the handling of biometric data. Meanwhile, the controversy has taken a toll on World Network’s native token, WLF, which has dropped below $2—a steep fall from its March 2023 peak of $11.74.