The Brazilian Office for Data Protection has issued a ban on Tools of Humanity (TFH), the developer of the World Digital Identifier, for offering cryptocurrency or financial compensation in exchange for biometric data. The National Data Protection Department (ANPD) has stated that such financial incentives can impact the consent of individuals, particularly those in vulnerable positions.
The ban came into effect last Saturday, and TFH is now required to halt the distribution of Worldcoin tokens in exchange for iris scanning. The investigation into TFH began in November 2024 following the re-launch of the World ID project in Brazil. ANPD’s findings highlighted that offering cash payments in cryptocurrency could raise questions about users’ voluntary consent to the processing of their biometric data.
A resolution by ANPD emphasized that “the financial remuneration proposed by the company can affect the free will of people, especially if their vulnerable position makes the proposed payment significant.” TFH, headed by developer Sam Altman, has clarified that it does not collect or store personal data, including biometrics, countering claims of misinformation spread on social media.
To obtain a World ID digital identifier, users are required to undergo iris scanning using the ORB device, which then provides a personality confirmation (Proof of Personhood) certifying their uniqueness. The company asserts that the iris image is erased and not retained after the process.
After successfully confirming their World ID, users can participate in the World Network ecosystem, receiving free Worldcoin (WLD) tokens currently valued at $1.92, as indicated by Coinmarketcap. Concerns about worldwide data collection have been raised not only in Brazil but also in countries like Chile, Argentina, Dominican Republic, and Mexico.
As part of the ANPD investigation, TFH was instructed to provide detailed reports on the processing of personal data, including user information and biometric data operations. The regulator emphasized the seriousness of world data collection due to its sensitivity and the irreversible nature of consent and data removal.
In response, TFH has stated that its operations comply with Brazilian law and expressed confidence in reaching an agreement with the regulator to continue its work in the country.