World ID Token (WLF) Drops 8% After Brazilian Suspension of Biometric Payments
World ID Token (WLF) – Brazil’s National Data Protection Authority (ANPD) has ordered Tools for Humanity (TFH), the company behind the World ID project, to cease offering crypto or financial compensation in exchange for collecting biometric data from Brazilian citizens. This decision, announced on January 24, follows an investigation that began in November after the World ID project was launched in Brazil.
Investigation Reveals Concerns Over Consent Validity
The ANPD’s enforcement division determined that compensating individuals with crypto in exchange for biometric data could undermine the validity of their consent, particularly since World ID involves sensitive biometric information, such as iris scans. Tools for Humanity, co-founded by OpenAI CEO Sam Altman, developed the project using iris biometrics to create a universal digital identity system. This system relies on an “orb” to scan individuals’ irises and aims to build a global financial network and digital identity infrastructure.
Legal Concerns Over Financial Incentives
Under Brazilian law, the collection of sensitive personal data, including biometric information, must be based on free, informed, and unequivocal consent for clearly defined purposes. The ANPD expressed concern that offering financial incentives, including crypto, could lead individuals in vulnerable situations to consent to data collection without fully understanding the consequences. The regulator also highlighted concerns about the irreversible nature of biometric data collection and the inability to delete this data once it’s been submitted.
Global Regulatory Pressures
This isn’t the first regulatory issue for the World ID project. In December, Germany’s data protection authority issued similar corrective measures, demanding that World Network comply with EU’s General Data Protection Regulations (GDPR) regarding the handling of biometric data.
Impact on WLF Token
As news of the suspension spread, the native token of the World Network, WLF, saw a sharp decline. Over the past 24 hours, the token dropped by more than 8%, falling below $2. From its all-time high of $11.74 in March 2023, WLF has now lost 83% of its value, according to data from CoinGecko.
The Brazilian suspension is a major setback for the World ID initiative, which is already facing regulatory challenges on multiple fronts as it seeks to build a global digital identity network.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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