Connect with us

Hi, what are you looking for?

Brazils
Brazils
#image_title

Cryptocurrency

Brazil Maintains Ban on World ID Crypto Payments Over Privacy Concerns

Brazil’s data protection agency reinforced the prohibition on World ID-linked crypto rewards, citing reasons like privacy concerns of users. As a result of the decision, World, formerly Worldcoin, cannot offer financial payments in exchange for users’ biometric data, reinforcing the country’s tough data policy.

Brazil’s data protection agency has maintained its decision to prohibit cryptocurrency-based rewards for users participating in the World ID program. The regulators resist the modification requests and continue to refuse permission for a digital currency-based rewards program.

The National Data Protection Authority (ANPD) rejected an appeal from Tools For Humanity, the company behind World ID, to lift restrictions on offering cryptocurrency compensation in exchange for biometric data. On March 25, the ruling stated that a user can’t give informed consent about sharing their data when there is a financial incentive.

The company will have to pay a daily fine of 50,000 Brazilian reais (roughly $8,800) for continuing data collection activities in Brazil as per the order.

A verification program called World ID, which uses iris scans to create a distinct digital identity, was brought to Brazil but soon faced regulatory backlash. Just months after its launch, regulators suspended its operations, citing dangers of biometric data.

Officials believe that compensating users in cryptocurrency for their biometric data is unethical and contravenes Brazil’s stringent data protection regime. The ANPD’s decision indicates a wider global trend of increased scrutiny over digital identity solutions relying on biometric data.

Many other markets are looking at digital identity solutions to combat fraud and Sybil attacks driven by AI, while Brazil is taking a tougher approach toward them. Some companies have built alternate systems that allow for verification of identity without the use of biometric data.

Brazil’s strong position on the issue of digital identity is significant. There is open debate on systems for digital identity in other markets as a way to fight AI fraud and Sybil attacks. Some firms are developing alternatives that don’t require biometrics, thus reducing regulatory and privacy risks.

author avatar
Alex
Formally freelance blogger Alex is passionate writer with interest in Finance and Business, fascinated about crypto following news and covering stories.
Advertisement

You May Also Like

Cryptocurrency

This week’s Crypto Chronicle explores Ripple's potential SEC settlement, Canada’s leap ahead with Solana ETFs, growing controversy around MANTRA token, and Meta’s aggressive push...

Cryptocurrency

Arizona’s proposed crypto reserve bill, SB 1373, has passed a critical legislative stage and is now one vote away from becoming law. The lawmakers will...

Cryptocurrency

With tensions boiling over and wallets linked to sanctioned individuals being frozen, Russia is looking into making its own stablecoin. This step will lessen...

Cryptocurrency

A federal judge has halted a lawsuit filed by 18 U.S. states against the SEC, potentially influencing the agency's perspective on cryptocurrency. The lawsuit...

polkadot
Polkadot (DOT) $ 4.02 2.57%
bitcoin
Bitcoin (BTC) $ 92,739.00 0.97%
ethereum
Ethereum (ETH) $ 1,750.93 2.83%
cardano
Cardano (ADA) $ 0.696881 1.64%
xrp
XRP (XRP) $ 2.19 4.05%
stellar
Stellar (XLM) $ 0.268282 1.61%
litecoin
Litecoin (LTC) $ 81.60 3.47%