Brazil Bans World ID Crypto Program

[Update 12/30/25: This article has been edited to include a response from World, and to more clearly explain the terms of the regulatory action.]

Brazil’s National Data Protection Agency (ANPD) has issued an order requiring Tools for Humanity (TFH) to cease its practice of offering cryptocurrency to Brazilian citizens who register for its World ID platform. The order, effective January 25, 2025, follows an investigation that began in November after the World ID project launched in Brazil.

Worldcoin, established in 2019 by OpenAI CEO Sam Altman and others, operates a global digital identity and financial network that uses iris scanning technology through a device called the “Orb.” The system employs iris biometrics to verify individual uniqueness and prevent multiple registrations. The project has faced significant challenges in recent months.

Despite regulatory headwinds, Worldcoin has shown substantial growth, recently reaching 10 million verified users globally. However, the project has also struggled with hardware limitations, facing an Orb shortage that has impacted its expansion plans in various markets.

The ANPD’s decision stems from Brazilian legal requirements regarding sensitive personal data processing, which mandate that consent must be free, informed, unequivocal, and purpose-specific. The regulatory body determined that offering cryptocurrency compensation could compromise consent validity, particularly among vulnerable populations. The agency specifically highlighted concerns about the permanent nature of biometric data collection and the impossibility of deletion once provided.

The enforcement division’s ruling concluded that financial incentives could potentially influence decision-making and compromise the data collection process’s integrity. The ban reflects Brazil’s data protection framework, which draws inspiration from the European General Data Protection Regulations (GDPR).

In a statement, World has issued the following statement: “World is compliant with all laws and regulations in Brazil. Recent inaccurate reports and social media activity has resulted in the ANPD having false information. We are in contact with the ANPD and are confident we can work with them to ensure the continued ability of all Brazilians to fully participate in the World network. We are committed to continuing to offer this important service to all Brazilians.”

Sources: TradingView, Cryptonomist, PANews Lab

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January 27, 2025 – by the ID Tech Editorial Team