Brazil Stops Crypto Rewards for Biometric Data Collection

Brazil stops crypto rewards for biometric data collection, enforcing stricter privacy laws and transparency to protect citizens’ sensitive information.

Brazil’s data protection watchdog, the National Data Protection Authority (ANPD), has taken action against Tools for Humanity (TFH), the company behind the World ID project. The ANPD has given TFH instructions to stop all cryptocurrency and financial incentive programs which target the collection of Brazilian citizens’ biometric information including irises.

Following the inspection launched by the ANPD’s General Coordination of Inspection (CGF) in November 2024 the decision was implemented. Authorities conducted an inspection to investigate meeting standards through which TFH handled biometric data during their World ID initiative. According to TFH their initiative provides technological measures which confirm user authenticity and strengthen digital protection because artificial intelligence use continues to proliferate throughout the industry.

The ANPD expressed concerns about these particular practices. The use of monetary incentives which include cryptocurrencies has the potential to undermine participants’ capability to provide voluntary consent. Processing consent for sensitive information under Brazil’s General Data Protection Law (LGPD) requires three criteria which include free and voluntary provision as well as adequate information and transparency. According to the ANPD its believed that financial rewards could pressure especially disadvantaged individuals into providing their personal data without an adequate understanding of related risks.

Brazil Tightens Rules on Biometric Data Handling by TFH

The ANPD revealed major concerns that exist with how data is stored. Biometric data becomes permanent and uncontrollable once it is collected. Once data collection begins this leads to irretrievable issues surrounding consent revocation and privacy restoration. The CGF labeled sensitive data handling as exceptionally severe and cautioned about resulting future impacts.

In response to these identified challenges the ANPD has established preventative actions. The website of TFH must display information about their data processor in compliance with new regulations. The company needs to immediately discontinue using cryptocurrency payments as compensation for gathering biometric information from individuals. The authorities activated these regulations beginning Saturday, January 25.

Nearly, Brazil’s security strategy regarding citizen data demonstrates its strong dedication to ethical handling and privacy protection. The World ID project emphasizes the need for transparency and accountability when handling emerging technologies. Brazil demonstrates a model approach for maintaining technological progress alongside essential privacy protection of people’s rights through this particular action.