Brazil’s data protection authority has upheld its ban on cryptocurrency compensation for the World ID project due to privacy concerns. Tools For Humanity’s appeal was rejected, maintaining a suspension on financial recompense tied to iris scans. This investigation, initiated in November, aims to protect user consent amid rising digital identity issues.
Brazil’s National Data Protection Authority (ANDP) has reaffirmed its ban on cryptocurrency compensation linked to the World ID project, primarily due to concerns regarding user privacy. In an announcement dated March 25, ANDP dismissed a request from Tools For Humanity, the developer of World ID, to re-evaluate the prohibition against financial compensation for users who submit biometric data via iris scans.
The decision mandates that the suspension of financial compensation, whether in cryptocurrency (Worldcoin – WLD) or other forms, remains enforced for any World ID created through the collection of iris scans in Brazil. Failure to comply with this regulation could result in a daily fine of 50,000 Brazilian reais (approximately $8,800) for the company.
ANDP’s inquiry into World, previously known as Worldcoin, commenced in November due to apprehensions that financial incentives could undermine users’ capacity to consent to the provision of sensitive biometric information. The World ID system enables users to generate a unique digitalpassport through iris scans, facilitating online authentication.
Reportedly, since January 25, Tools For Humanity has been ordered to cease its operations targeting Brazilian users. Despite facing regulatory challenges in Brazil, the adoption of digital identification methods is experiencing growth in various markets due to emerging concerns surrounding AI deepfakes and Sybil attacks.
The prevalence of bots and artificial intelligence is escalating, thereby diluting online engagement on platforms like X and Facebook, where an estimated 15% of accounts are estimated to be bots. Furthermore, research from Chainalysis indicates that generative AI is amplifying the profitability of crypto scams by enabling the impersonation of fake identities.
Certain enterprises are striving to develop digital identity solutions that mitigate privacy and regulatory issues. An example is Billions Network, which recently introduced a digital identity platform that does not necessitate biometric data. This platform employs a zero-knowledge verification technology called Circom and has already been trialed by prominent financial institutions such as HSBC and Deutsche Bank.
In conclusion, Brazil’s ANDP has solidified its stance against cryptocurrency compensations tied to the World ID project, driven by user privacy concerns. The ongoing investigation and subsequent ban highlight the delicate balance between digital innovation and privacy rights. As the digital identification landscape evolves, it remains vital for companies to prioritize user consent and address regulatory frameworks, especially amidst rising concerns related to AI and scams. The regulation emphasizes the necessity for responsible innovation, particularly as the digital identity market grows across diverse jurisdictions.
Original Source: cointelegraph.com
