Brazil’s National Data Protection Authority (ANPD) has banned Worldcoin from collecting biometric data in exchange for cryptocurrency rewards. The ban took effect on January 25 after an investigation into data privacy concerns.
The ANPD ruled that paying users with cryptocurrency could undermine free and informed consent. Brazilian law requires that sensitive personal data be collected with clear and specific approval.
Authorities warned that collecting and storing biometric data poses irreversible privacy risks. The inability to delete collected iris scans further intensified concerns over data misuse.
Germany’s data protection authority also imposed corrective measures, requiring compliance with GDPR. Regulatory pressure is growing as governments evaluate Worldcoin’s impact on privacy and security.
Following the ban, Worldcoin’s WLF token dropped 8% in 24 hours, falling below $2. Since its peak at $11.74 in March 2023, the token has lost 83% of its value, raising concerns about its future.