Brazil bans TFH from offering compensation for biometric data

Brazil’s data watchdog has banned Tools of Humanity (TFH), the company behind digital identity project World, from offering cryptocurrency or financial compensation in exchange for biometric data. The agency ruled that financial incentives could influence people’s consent – especially if they are in a vulnerable position.

The National Data Protection Authority (ANPD) issued a preventive measure against the venture, formerly known as Worldcoin, which came into effect last Saturday. According to the decision, World will have to suspend offering its Worldcoin tokens in exchange for the collection of iris data. 

The investigation into Tools kicked off in November after the re-launch of the World ID project in Brazil. Among its conclusions is that offering monetary compensation in the form of cryptocurrency may harm the validity of obtaining consent from users. 

“Monetary consideration offered by the company may interfere with the free expression of the will of individuals by influencing the decision regarding the provision of their biometric data, especially in cases where potential vulnerability and insufficiency make the weight of the payment offered even greater,” the decision reads.

The Sam Altman co-founded project, however, is arguing that it is not, in fact, collecting or storing any personal data, including biometrics. On Monday, the company published a response to the ANPD decision, arguing that the false narratives around the project are a result of a misinformation campaign shared on social media.

To sign up for the World ID digital identity, users are required to scan their irises through the company’s Orb device and receive their “Proof of Personhood” (PoP) which guarantees they are real and unique people.

“There is absolutely no exchange of money or tokens when a person verifies their World ID,” the company says. Once a person’s World ID is verified, the images taken by the Orb are permanently deleted and not stored by World, it adds.

A verified World ID enables users to participate in the World Network open protocol – including claiming a free share of Worldcoin (WDL). The crypto-token is currently trading for US$1.92, according to CoinMarketCap.

Arguments from Tools of Humanity and the World projects seem to have not had much of an effect on Latin American regulators. Pushback against biometric data collection has been recorded in Chile, Argentina, the Dominican Republic and Mexico. 

The Brazilian National Data Protection Authority kicked off its inspection into Tools of Humanity in November after the launch of the World ID project in Brazil. During the investigation, Tools of Humanity was required to submit a number of clarifications on processing personal data, including an impact report and a record of personal data processing operations.

The agency says that it has also considered that World’s processing of personal data was “particularly serious”, considering its sensitivity and the lack of possibility to delete collected biometric data or revoke consent. In its decision, the data watchdog also ordered the company to identify the person responsible for processing biometric data.

World, however, believes that the project is compliant with all laws and regulations in Brazil. 

“World representatives are in contact with the ANPD, Brazil’s National Data Protection Authority, as they have been since before the start of operations in November 2024. They are confident they can work together with the authorities to ensure the continued ability of all Brazilians to fully participate in World Network,” the company says.

Article Topics

ANPD  |  biometric data  |  biometric identifiers  |  biometrics  |  data protection  |  Tools for Humanity  |  World  |  World ID