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.
Geopolitical conflict rattles markets, but history shows panic selling crypto in response is usually the wrong move.
Bitcoin-focused investment firm Strategy Inc. (formerly MicroStrategy) is facing mounting legal pressure as at least five law firms have filed class-action lawsuits over the company’s $6 billion in unrealized Bitcoin losses.
Digital banking platform SoFi Technologies is making a strong return to the cryptocurrency space, relaunching its crypto trading and blockchain services after stepping away from the sector in late 2023.
Digital assets are gaining ground in corporate finance strategies, as more publicly traded companies embrace cryptocurrencies for treasury diversification.