- Brazil halts Worldcoin’s crypto-for-biometric data exchange, citing risks to informed consent and exploitation of financial vulnerabilities.
- WLD token drops 10.07% amid regulatory hurdles, but trading volume surges 77.66%, signaling heightened investor activity.
Brazil’s National Data Protection Authority (ANPD) has ordered Tools for Humanity (TFH), the entity behind the World ID project, to cease offering cryptocurrency or financial benefits in exchange for biometric data collection from Brazilian citizens.
The directive, effective January 24, follows an investigation launched in November after the disputed project’s Brazilian debut.
The ANPD identified that crypto payments in exchange for sensitive biometric data, such as iris scans, could undermine individuals’ ability to provide free, informed, and full consent. According to the authority, the approval must be clear and specific, free from external influence, particularly monetary compensation, which may exploit individuals’ vulnerabilities or financial deficits.
Additionally, a statement from the ANPD raised the seriousness of processing sensitive personal data, citing the permanent nature of biometric data collection and the difficulty of withdrawing consent once provided. The preventive measure is in effect, with the ANPD stating that further actions could follow pending additional evaluations.
Following the allegations, Tools for Humanity, the operator of World ID, denied charges of regulatory violations and asserted compliance with Brazilian laws. The company indicated that it would engage with the ANPD and expressed confidence in joining efforts to enable Brazilians to participate fully in the global network.
Global Expansion Amid Heightened Scrutiny
Despite regulatory pushback in Brazil and other jurisdictions, Worldcoin continues to expand its presence globally. The company recently announced the rollout of its World ID orb verification system in Austria, starting July 31, with multiple locations in Vienna set to host the initiative.
Participants aged 18 and above can verify their World ID, strengthening the company’s commitment to deploying proof-of-humanness technology in Europe.
However, Worldcoin has faced similar scrutiny elsewhere. The project was paused in Spain pending a General Data Protection Regulation (GDPR) audit, while Portugal temporarily suspended biometric data activities in March.
Despite these challenges, surveys indicate that the project retains strong support in regions like Latin America, where respondents from Peru, Mexico, Colombia, and Ecuador expressed positive sentiment toward World ID technology.
Amid regulatory hurdles, Worldcoin’s WLD token has experienced a sharp decline of 10.07% over the past 24 hours, trading at $1.88 with a market cap of $1.88 billion.
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However, the trading volume has surged by 77.66% to $345.16 million, indicating increased investor activity during the downturn. Technical analysis reveals increased selling pressure after a brief stabilization at $2.10, with no immediate support levels evident.
Market Cycle Insights and Recovery Potential
Despite the recent price decline, some analysts remain bullish. Crypto analyst Ali notes that Worldcoin (WLD) is in the early stages of its market cycle. After an initial surge in early 2024, WLD experienced volatility, reflecting typical market psychology phases.
Following a peak, the token saw declines, aligning with phases of anxiety and denial. By mid-2024, it entered a yielding phase marked by consolidation and slight recoveries. Currently trading around $2.24, WLD shows signs of entering a recovery phase, suggesting potential for future gains.
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