Brazil’s ANDP has upheld a ban on World ID project crypto payments due to privacy issues. Tools For Humanity’s request for a review was denied, and the company faces fines for resuming iris scan data collection. This situation arises amid a growing demand for digital identity solutions, posing challenges like online fraud and privacy concerns.
Brazil’s National Data Protection Authority (ANDP) has reaffirmed its ban on cryptocurrency payments associated with the World ID project, citing privacy concerns for users. This decision followed a petition from Tools For Humanity, the developer of World ID, which sought to review the ban on financial compensation for users providing biometric data via iris scans.
In a statement issued on March 25, ANDP confirmed it would continue to prohibit any financial compensation, whether in cryptocurrency (notably Worldcoin – WLD) or other forms, in exchange for World IDs created through the collection of iris scans. Failure to comply could result in fines of 50,000 Brazilian reais (approximately $8,800) per day.
The investigation into World, previously known as Worldcoin, commenced in November due to concerns that financial incentives could impair users’ ability to give informed consent regarding sensitive biometric data. World ID functions as a digital passport, established when users consent to iris scans for online authentication.
Tools For Humanity was previously ordered to cease its service offerings to Brazilian residents as of January 25. Despite legal challenges in Brazil, the demand for digital identity solutions is increasing in other jurisdictions amid rising concerns about AI-generated deepfakes and Sybil attacks on social media.
Research indicates that up to 15% of accounts on platforms like X may represent bots, exacerbating issues with online discourse. Additionally, generative AI has turned crypto scams into highly profitable ventures due to the ease of fabricating false identities. Some firms are exploring digital identity solutions that eschew privacy violations; for instance, Billions Network recently introduced a platform that does not depend on biometric data and has garnered interest from major banks such as HSBC and Deutsche Bank.
The decision by Brazil’s ANDP to maintain the ban on cryptocurrency payments for the World ID project underscores the critical need for user privacy protection in emerging digital identity solutions. The concerns surrounding biometric data collection and the resultant implications for informed consent highlight the evolving landscape of digital identity verification amid the rise of AI and online fraud. As alternative solutions emerge, it is essential for companies to prioritize regulatory compliance to foster user trust in digital platforms.
Original Source: cointelegraph.com
