Brazil’s Data Protection Agency Maintains Ban on World Crypto Payments

Brazil’s National Data Protection Authority has upheld a ban on cryptocurrency payments for the World ID project due to user privacy concerns. The agency rejected a request from Tools For Humanity to review the prohibition on financial compensation for biometric data. The investigation emphasizes the need for secure digital identity solutions amidst rising AI-driven threats.

Brazil’s data protection agency, the National Data Protection Authority (ANDP), has reaffirmed its decision to prohibit cryptocurrency rewards associated with the World ID initiative, addressing concerns regarding user privacy. In a statement made on March 25, ANDP dismissed a request from Tools For Humanity, the organization behind World ID, to reconsider its restriction on financial compensation for users submitting biometric data via iris scans.

ANDP emphasized that it will uphold the suspension of financial compensation in any form, including cryptocurrency (Worldcoin – WLD), for individuals in Brazil who participate in the World ID program by providing iris scans. Furthermore, Tools For Humanity is subject to a daily penalty of 50,000 Brazilian reais ($8,800) if it continues to collect data under these conditions.

The investigation into World, formerly Worldcoin, initiated in November, highlighted concerns that offering financial rewards could undermine individuals’ ability to willingly consent to share their sensitive biometric information. The World ID mechanism involves iris scans that yield a unique digital identity for online authentication.

As previously reported, Tools For Humanity was directed to cease its services for Brazilian users beginning January 25. Despite the controversy surrounding World ID’s compliance with Brazilian regulations, digital identification technologies are witnessing increased adoption in various international markets, driven by the threats posed by AI-generated deepfakes and Sybil attacks.

The increase in automated tools and artificial intelligence is also diminishing the quality of discourse across social media outlets, including X and Facebook, with studies indicating that approximately 15% of accounts on X may be bots. Additionally, blockchain research firm Chainalysis has revealed that generative AI is amplifying the profitability of cryptocurrency scams through the facilitation of fake identity creation.

In response to privacy issues and the potential for regulatory challenges, several organizations are pursuing digital identity solutions that avoid the use of biometric data. Notably, Billions Network recently launched a digital identity platform employing zero-knowledge verification technology termed Circom, which has already garnered testing from prominent financial institutions like HSBC and Deutsche Bank.

The ANDP has firmly established its position regarding the prohibition of cryptocurrency compensation linked to the World ID project, primarily due to privacy concerns surrounding biometric data collection. As the landscape for digital identification evolves, the need for secure and compliant solutions becomes increasingly crucial, particularly in light of advancements in AI and social media challenges.

Original Source: cointelegraph.com