World Network, the iris-scanning digital ID project previously known as Worldcoin, can no longer offer crypto rewards to people in Brazil. The country's data protection authority has stepped in and told the company behind this biometric initiative to stop providing financial incentives for collecting biometric data from its citizens.

On January 24, the National Data Protection Authority (ANPD) ordered Tools for Humanity (TFH)—the organization behind World Network—to halt its services for Brazilians starting January 25. This decision came after an investigation that began in November, right after the World ID project launched in Brazil.

The ANPD found that offering cryptocurrency as compensation could undermine the validity of user consent for collecting sensitive biometric data. World Network was co-founded in 2019 by Sam Altman, the CEO of OpenAI. The project uses iris biometrics developed by TFH, based in San Francisco and Berlin, aiming to create a universal digital identity and financial network by scanning people's irises with a device called an “orb.”

Brazilian law requires that consent for processing sensitive personal data must be free, informed, and specific. The ANPD expressed concerns that financial incentives might influence people's decisions, especially those in vulnerable situations. They also emphasized the sensitive nature of biometric data, the irreversible collection process, and the fact that once biometric data is provided, it cannot be deleted.

In December, Germany's data protection authority also took action regarding the digital identity project. They focused on how biometric data was being handled and required World to comply with the EU's General Data Protection Regulations.

As for the native token, WLF, it has dropped over 8% in the last 24 hours, falling below $2 at the time of this writing. Launched in July 2023 to power the network, this token has seen an 83% decline from its all-time high of $11.74 in March, according to CoinGecko.