Brazilian Regulator Cracks Down on Worldcoin
The National Authority for Data Protection (ANPD) in Brazil has prohibited the World Network project, formerly known as Worldcoin, from offering cryptocurrency or financial incentives in exchange for collecting biometric data from Brazilian citizens. The decision took effect on January 25, following an investigation initiated in November last year.
Concerns Over User Consent and Sensitive Data
The ANPD's enforcement division determined that offering cryptocurrency as a reward for iris scanning could undermine the voluntariness and validity of user consent. Under Brazilian law, consent for processing sensitive personal data must be free, informed, and explicit, which the regulator deemed questionable in this case.
Specific concerns were raised about the impact on vulnerable populations, who could be easily swayed by financial incentives. The ANPD also highlighted the irreversibility of biometric data collection and the challenges associated with deleting such data once it has been gathered.
Worldcoin's Global Controversy
World Network, co-founded by OpenAI CEO Sam Altman, uses iris-scanning technology developed by Tools for Humanity. The project aims to create a universal digital identity and financial network through a futuristic device called the "Orb."
Similar issues surrounding biometric data handling have arisen in other countries. For instance, in December, Germany's data protection authority instructed the project to adopt measures complying with the European Union's General Data Protection Regulation (GDPR).
Impact on WLF Token
The project's native token, WLF, has experienced a significant drop in value. Over the past 24 hours, it has lost more than 8% of its value, falling below $2. Since its all-time high of $11.74 in March 2023, the token has depreciated by approximately 83%, according to CoinGecko.
The Future of the Project in Question
The Brazilian regulator's decision, combined with global scrutiny over biometric data handling, casts uncertainty over the future of the Worldcoin project. Regulation and the protection of sensitive data remain critical challenges for the development of similar initiatives.
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