Brazil’s data protection agency upheld a ban on World ID’s crypto payments due to privacy concerns. The agency rejected Tools For Humanity’s petition to review this decision and will maintain the prohibition on financial compensation for biometric data collection. The initiative began facing scrutiny in November 2022, amid rising digital identity solution demands in a privacy-conscious climate.
Brazil’s National Data Protection Authority (ANDP) has reaffirmed its ban on cryptocurrency payments associated with the World ID initiative due to privacy issues regarding user data. On March 25, an announcement detailed ANDP’s decision to reject a petition from Tools For Humanity, the developer of World ID, to reconsider its prohibition on offering financial incentives in exchange for biometric data.
ANDP stated that it will continue to prohibit the distribution of financial compensation, including cryptocurrencies like Worldcoin (WLD), for any World ID generated from iris scans in Brazil. The agency’s stance entails a potential daily penalty of 50,000 Brazilian reais (approximately $8,800) should the company resume its data collection activities.
The investigation into World, previously known as Worldcoin, was initiated in November of the previous year as concerns grew regarding the impact of financial rewards on users’ informed consent concerning sensitive biometric data. The controversial World ID, formed through user consent to iris scans, serves as a unique digital passport for online authentication.
Furthermore, Tools For Humanity was mandated to cease its services to Brazilian users as of January 25, 2023. Despite regulatory challenges in Brazil, the demand for digital identity solutions is rising in other regions, particularly due to threats such as AI deepfakes and Sybil attacks that compromise online security.
On social media platforms such as X and Facebook, the escalation of bots and artificial intelligence has exacerbated issues of credibility, with estimates suggesting that up to 15% of accounts on X might be bots. Additionally, blockchain analytics firm Chainalysis reported that generative AI is enhancing the profitability of crypto scams by enabling the production of deceptive identities.
In response to privacy and regulatory challenges, some companies are developing alternatives for digital identity verification. Billions Network, for example, launched a digital identity platform earlier this year that does not utilize biometric data, relying instead on zero-knowledge verification technology, Circom, which has been validated by reputable financial institutions, including HSBC and Deutsche Bank.
In summary, Brazil’s ANDP has upheld its ban on cryptocurrency compensation related to the World ID project due to privacy concerns. The regulatory scrutiny arises from fears that financial incentives may influence users’ consent regarding biometric data collection. While World ID faces challenges in Brazil, there is a growing global demand for digital identity solutions that respect privacy and comply with regulatory frameworks.
Original Source: cointelegraph.com
