Brazil’s ANDP upheld a ban on cryptocurrency compensation for World ID tied to iris scans, citing privacy issues. The agency rejected a review request from Tools For Humanity, enforcing strict regulations against data collection efforts. The growing need for secure digital identities is evident as concerns over AI threats and identity fraud escalate.
Brazil’s National Data Protection Authority (ANDP) has upheld its ban on World ID’s cryptocurrency compensation system, based on privacy concerns regarding user data. The ANDP rejected a petition from developer Tools For Humanity requesting a review of this prohibition, emphasizing the protection of biometric data from iris scans.
The ANDP stated, “The suspension of financial compensation in any form for World ID created through iris scans of personal data subjects in Brazil will be maintained,” highlighting serious concerns over user consent and data protection. Tools For Humanity now faces a daily penalty of 50,000 Brazilian reais (approximately $8,800) if they attempt to resume data collection.
ANDP’s scrutiny of World, formerly known as Worldcoin, commenced last November due to fears that financial incentives might undermine user consent regarding sensitive biometric information. World ID, which generates a digital passport after iris scans, aims to authenticate users online but has disrupted local regulations since January 25.
The impact of digital identity strategies is broadening globally, especially in the face of rising AI deepfakes and social media complexities. Reports suggest that up to 15% of accounts on platforms like X may be bots, complicating online discourse.
Blockchain analytics company Chainalysis has indicated that generative AI technologies are enhancing the profitability of crypto scams by assisting in the creation of fraudulent identities. In response, some firms are exploring digital identity frameworks that bypass privacy issues. Billions Network, for instance, launched a biometric-free digital identity solution utilizing zero-knowledge verification technology, already vetted by major financial firms such as HSBC and Deutsche Bank.
Brazil’s data protection agency has reaffirmed its ban on cryptocurrency payments linked to the World ID project due to user privacy issues. The ongoing investigations indicate growing challenges in balancing digital identity solutions with regulatory compliance. Meanwhile, the rise of AI-related threats amplifies the need for secure identification processes that do not compromise personal privacy.
Original Source: cointelegraph.com
